RBA Gets Some Relief as Australian Core Inflation Beats Down

Australia's core inflation came in lower than expected in the last quarter, giving the Reserve Bank of Australia (RBA) some breathing space. The annual trimmed mean gauge of consumer prices rose 3.6%, which is below the estimated 3.7% forecast by economists.

The RBA aims to keep inflation at a midpoint of its 2% to 3% band, a level it hasn't reached in over four years. On a quarterly basis, the underlying measure increased by 0.8% from three months earlier, which is also lower than the predicted 0.9%.

This news has prompted money markets to reassess their bets on another interest rate increase this year. The RBA's goal of maintaining low inflation may be achievable, but it remains to be seen how long this trend will continue.