Australia's Lower-than-Expected Inflation Rate Could Mean Fewer Interest Rate Hikes

Australia's inflation rate came in lower than expected at 3.8 percent, potentially providing relief for millions of Aussies with mortgages.

The Australian Bureau of Statistics reported that headline inflation slowed to 0.6 percent in the June quarter from 1.4 percent in April, while the consumer price index fell from four percent to 3.8 percent.

The trimmed mean, which is the Reserve Bank of Australia's preferred measure, held steady at 0.8 percent in June and 3.6 percent on an annual basis, beating expectations that it would rise.

Rachael McCririck, head of price statistics at the ABS, noted that underlying inflation remains steady at 3.6 percent over the past 12 months.