Inflation Eases to 2.8 percent Amid Falling Fuel and Power Costs

Australia’s inflation rate has slowed to 2.8 percent, its lowest point since March 2021, returning to the Reserve Bank of Australia’s (RBA) target range for the first time in three years. Data from the Australian Bureau of Statistics (ABS) showed that consumer price index (CPI) inflation dropped from 3.8 percent in June, a slowdown attributed to government rebates and lower automotive fuel prices. Trimmed mean inflation, which omits volatile prices, was still above target at 3.5 percent, emphasising the underlying inflationary pressures in essential services. When trimmed mean inflation is above the target (in this case, it’s at 3.5 percent rather than the RBA’s target of 2-3 percent), it signals that prices for essential goods and services are still rising steadily....