Australia Inflation Slows To 4-Month Low

(RTTNews) - Australia's consumer price inflation slowed to a four-month low in June on lower fuel prices and underlying inflation remained stable, easing pressure on the central bank for further policy tightening.

The consumer price index posted an annual increase of 3.8 percent in June, following a 4.0 percent rise in May, the Australian Bureau of Statistics said Wednesday.

On a monthly basis, consumer prices edged down 0.1 percent but slower than the 0.7 percent decrease seen in the previous month.

"When we look through some of the bigger price movements, underlying inflation is steady at 3.6 percent in the 12 months to June 2026," ABS head of price statistics Rachael McCririck said. This was the same as in the twelve months to May.

Annual housing inflation came in at 6.8 percent in June, reflecting rising costs for electricity and new dwellings. Electricity remained one of the biggest contributors to annual inflation.

Food and non-alcoholic beverages and recreation and culture were the other largest contributors to annual inflation. Meanwhile, inflation for transport moderated to 0.1 percent from 3.3 percent driven by three consecutive falls in automotive fuel prices. "Lower world oil prices as a result of some stabilisation in the Middle East in June contributed to fuel prices falling 10.9 percent in the month," said McCririck.

Last month, the Reserve Bank of Australia left its interest rate unchanged at 4.35 percent after three consecutive rate hikes.