RBA Considers Rate Hike as Inflation Eases on Base Effects

Australia's annual inflation rate fell to 3.5% in July from 3.8% in June, but this decline is largely due to base effects rather than a true decrease in prices.

The Reserve Bank of Australia (RBA) may still consider a 25 basis point interest rate hike in September despite the easing inflation rate.

The trimmed mean, which measures underlying inflation, remained steady at 3.6% for a third consecutive month, and rose by 0.5% on a monthly basis, its sharpest increase in a year.