Australian consumer price inflation slowed more than anticipated in June, dropping to 3.8% from 4.0% in the previous month.
The decline marks a meaningful deceleration in headline pressures, driven primarily by a pullback in fuel costs from recent peaks.
4%, suggesting that core price pressures have not yet fully abated.
This softer-than-expected print provides immediate relief to markets that have been pricing in persistent inflationary stickiness across the region.
The market reaction was swift, with traders interpreting the data as a signal that the Reserve Bank of Australia (RBA) may have reached the end of its tightening cycle.
While the headline figure cooled, underlying inflation measures remain a point of contention.
Recent data indicated that the RBA’s preferred underlying gauge rose to 3.6% in May, up from 3.4%, suggesting that core price pressures have not yet fully abated.