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Australian CPI eases, trimming odds of an August RBA rate hike

Markets now price only about a 4% chance of a rate increase in August after softer inflation prints.

Reported · Written up by our desk · Central Banks

Forexlive reports that Australia’s June consumer price inflation came in slightly cooler than expected, with CPI falling 0.1% month over month versus expectations for a 0.2% gain.

On an annual basis, the CPI rate was 3.8% year over year compared with 4.0% expected, while the June trimmed mean was 3.6% year over year versus 3.7% expected and the quarterly CPI increase was 0.6% versus 0.7% expected.

The release also showed the Australian Q2 CPI at 4.0% year over year versus 4.1% expected, and the prior annual figure was 4.1%.

Forexlive adds that the softer data may reduce near term expectations for a rate hike, with market pricing implying only a 4% chance of a hike in August.

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