Inflation Data Could Dampen Hopes of Another Rate Hike

The Australian government is bracing for crucial inflation data on Wednesday, which could dash hopes of another Reserve Bank rate hike in August.

According to analysts, trimmed mean inflation, the preferred measure of the Reserve Bank, will likely rise to 3.7 percent in the June quarter.

RBA governor Michele Bullock has expressed concern that bringing inflation under control could become even harder due to global headwinds and entrenched price pressures.

Bullock noted that the past four years of above-target inflation have been a cautionary tale for the RBA board, with the longer it is out of target, the more concerned the board becomes.