Inflation Refuses to Budge as Housing Costs Surge

Australia's inflation rate has refused to ease, with new figures showing that housing costs continue to rise and putting pressure on households.

The Australian Bureau of Statistics reported that annual inflation fell to 3.5 per cent in July, down from 3.8 per cent in June, but economists had expected it to fall further to 3.3 per cent.

The trimmed mean inflation rate, closely watched by the Reserve Bank of Australia when making interest-rate decisions, remained at 3.6 per cent for a second consecutive month, its highest level since September 2024 and well above the RBA's 2-3 per cent target range.

Housing remains the biggest source of pressure, with costs rising 5 per cent over the year, and food and non-alcoholic beverages also increasing by 3.2 per cent over the same period.