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Australia CPI cools to 3.5% YoY as AUD/USD edges higher

July CPI rose 1.0% month over month, while the trimmed mean gauge increased 0.5% month over month.

Reported · Written up by our desk · Major Pairs

Australia’s consumer prices climbed 3.5% year over year in July, down from 3.8% in June, according to data published by the Australian Bureau of Statistics. The monthly CPI increased 1.0%, after a 0.1% decrease in the prior month.

The report also showed the Reserve Bank of Australia preferred trimmed mean CPI rising 0.5% month over month in July, with the annual trimmed mean rate at 3.6% year over year. The figures were reported as monthly CPI and trimmed mean CPI measures that investors track for monetary policy expectations.

Following the release, the Australian dollar strengthened, with FXStreet citing fresh buying in AUD/USD. The pair was up 0.13% on the day to trade around 0.7172 at the time of writing.

Earlier forecasts referenced by the report expected inflation to rise 3.2% year over year and monthly CPI to increase 0.8%. The latest ABS data also noted the trimmed mean CPI, which is closely watched by the RBA, increasing in line with expectations on the annual basis and on the month-to-month measure.

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