Australia's Inflation Rate Falls to 3.8%, Easing Pressure on Interest Rates

Australia's inflation rate fell to 3.8% in June, easing pressure on interest rates, according to the latest data from the Australian Bureau of Statistics.

The figure is lower than market expectations and down from 4.0% recorded in May.

While inflation remains above the Reserve Bank of Australia's target range of 2% to 3%, the result was still better than economists had expected.

As a result, interest rate hike expectations have dropped, with financial markets now pricing in only a 3% chance of another increase at the RBA's next meeting.