RBA Faces Sticky Inflation Concerns Amid Rising Core Prices

The Reserve Bank of Australia (RBA) is likely to face concerns over sticky inflation, according to KPMG chief economist Dr Brendan Rynne.

Headline inflation appears to have softened in the year to July 2026, with a consumer price index (CPI) rise of 3.5 per cent, down from 3.8 per cent in June.

However, core inflation remains high, with trimmed mean annual inflation steady at 3.6 per cent in the 12 months to July.

This is above the RBA's target band of 2-3 per cent, and Dr Rynne believes that a further increase in the cash rate by a quarter of a percentage point will be necessary to bring core inflation back under control.