Australian CPI inflation rises by 1% in June quarter

NEW Delhi: The Australian Bureau of Statistics reported on Wednesday that the consumer price index (CPI) increased by 1.0% in the June quarter, aligning with market expectations. The annual CPI inflation rate rose to 3.8% in the second quarter, up from 3.6% in the first quarter, also meeting forecasts. In June alone, CPI rose 3.8% compared to the same month a year earlier.However, the trimmed mean, a key measure of core inflation, increased by 0.8% in the second quarter from the previous quarter, falling short of the 1.0% forecast. The annual pace of core inflation slowed to 3.9% from 4.0%, marking the lowest level since early 2022.The Reserve Bank of Australia (RBA) has maintained interest rates at 4.35% for five consecutive meetings. Policymakers have been deliberating whether the current policy is sufficiently restrictive, given the limited progress in cooling prices indicated by earlier inflation data. The RBA has been cautious about raising rates further, considering their concerns about a potential sharp slowdown in the labor market. The unemployment rate slightly increased to 4.1% in June, while consumers have curbed their discretionary spending, and economic growth has nearly stagnated.Looking ahead, analysts anticipate that new government electricity rebates will significantly reduce price pressures in the third quarter.