RBA Sees Softened Inflation as August Rate Hike Fears Ease

The Reserve Bank of Australia (RBA) has released inflation figures for June, showing that headline inflation fell to 3.8% from 4%, the lowest level since February.

According to RBA's chief economist Sarah Hunter, the lower-than-expected oil prices were among the contributors to the inflation numbers being below forecasts.

The trimmed mean inflation, the preferred measure for the RBA, remained steady at 3.6%, below the central bank's prediction of 3.8%.

Despite the inflation figures coming down, they still remain well above the Reserve Bank's target band of between two and three per cent.