Inflation Eases to 3.8%, RBA May Hold Rates

Australia's annual inflation rate eased to 3.8% in the 12 months to June, down from 4% in May and below market expectations of 4%, according to data released by the Australian Bureau of Statistics (ABS).

The softer-than-expected print adds weight to expectations that the Reserve Bank of Australia (RBA) will leave the cash rate on hold at 4.35% when its Monetary Policy Board meets on August 11.

Housing and electricity remain the main pressure points, with housing rising 6.8% and electricity prices increasing by 22.4%, driven by expiring government rebates.