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Core inflation in Australia has dropped to its lowest point since the peak of the pandemic, potentially setting the stage for a third interest rate cut this year during the Reserve Bank’s upcoming meeting in two weeks. According to fresh data released by the Australian Bureau of Statistics, headline inflation decreased to 2.1 per cent for the year ending in the June quarter, aligning exactly with the Reserve Bank of Australia’s (RBA) target range.
In addition, the trimmed mean inflation rate, which is the RBA’s preferred gauge for core or underlying inflation, has also dipped from 2.9 per cent to 2.7 per cent. This aligns with economists’ forecasts, although the RBA had earlier anticipated a slightly lower figure of 2.6 per cent.