Figures released this morning, Wednesday, June 25, during the Asian session, from the Australian Institute of Statistics (ABS), showed that consumer price inflation rose by 2.1% in May year-on-year, compared to 2.4% in April. Expectations were for a 2.3% increase, while the index recorded a 0.4% monthly growth.
The core index, which excludes sharp changes in consumer goods and services prices, grew by 2.4% in May, compared to 2.8% in April, marking its lowest level since 2021.
In detail, the most significant increases in the index came from the housing sector (2%), food and non-alcoholic beverages (2.9%), and alcohol and tobacco prices (5.9%). In contrast, the transport sector declined by -2.5%, electricity by -5.9%, and motor fuel by -10.0%. Market expectations for a July interest rate cut have risen, driven by these stable figures and slowing inflation, which falls within the Reserve Bank of Australia’s target range of 80% to 90%, with three more cuts planned for the remainder of the year