Australia's Inflation Rate Comes in Lower Than Expected, RBA May Hold Off

Australia's inflation rate has come in lower than expected, according to recent data from TD Securities. The Consumer Price Index (CPI) for Q2 and June headline inflation both fell short of forecasts, which may give the Reserve Bank of Australia (RBA) pause before making any further decisions.

The trimmed mean inflation measure, a key focus for the RBA, showed a yearly increase of 3.6%, below the May Statement of Monetary Policy forecast of 3.8%. The quarterly print of 0.81% was similar to Q1's 0.84%.

Housing and food were the largest contributors to the headline CPI in June, followed closely by recreational services.