Shock figure may be good news for millions of Aussies with a mortgage: Inflation comes in lower than expected
Millions of Aussies bracing for another rate hike next month may have been given good news with inflation coming in lower than forecast at 3.8 per cent.
Australian Bureau of Statistics data showed on Wednesday headline inflation slowed to 0.6 per cent in the June quarter from 1.4 per cent in April.
The consumer price index fell from four per cent to 3.8 per cent.
The trimmed mean – the Reserve Bank of Australia’s preferred measure – held at 0.8 per cent in June and 3.6 per cent on an annual basis, beating expectations it would rise.
‘When we look through some of the bigger price movements, underlying inflation is steady at 3.6 per cent in the 12 months to June 2026,’ ABS head of price statistics Rachael McCririck said.
‘This is the same as in the 12 months to May 2026.’
Ahead of the release of the ABS data, pricing data from Bloomberg put the likelihood of a rate rise in August at 19 per cent.
Now, money market traders have lowered the odds to 14 per cent.
Core inflation – the Reserve Bank of Australia’s preferred measure – held at 0.8 per cent in June
Ahead of the release of the ABS data, pricing data from Bloomberg put the likelihood of a rate rise in August at 19 per cent
Reuters data has also dropped the implied odds of a rate increase by the end of the year from 82 per cent to 64 per cent.
The Australian dollar dropped 0.3 per cent to 69.5 US cents.
more to come
