SYDNEY: Australian consumer prices grew at the slowest pace in over four years in the June quarter, data showed on Wednesday, while core inflation hit a fresh three-year low and cemented market wagers for a cut in interest rates next month.
The Australian Bureau of Statistics’ consumer price index (CPI) rose 0.7% in the June quarter, under forecasts of a 0.8% increase. Annual CPI inflation dipped to 2.1%, from 2.4%, and again below forecasts.
Finance ministry projects July inflation at 3.5-4.5% as price pressures ease
The key trimmed mean measure of core inflation increased by 0.6% in the quarter, under forecasts of a 0.7% gain.
The annual pace slowed to 2.7%, from 2.9%, taking it further into the Reserve Bank of Australia’s 2% to 3% target band.
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