Australian Inflation Slows, Rate Hike Odds Plummet

Australia's inflation rate slowed in the second quarter of the year, according to data from the Australian Bureau of Statistics. The consumer price index (CPI) rose 0.6% in the June quarter, down from a 1.4% increase in the previous period.

The annual CPI eased to 4.0%, from 4.1% in the previous year. Core inflation, measured by the trimmed mean, increased by 0.8% on-quarter, which is below forecasts for a 0.9% gain.

Markets have pared back their expectations of an interest rate increase next month to just 4%, from 21% previously. The Reserve Bank of Australia (RBA) has raised the key rate three times this year to tame inflation, fully reversing the amount of policy easing implemented last year.