Australia Inflation Gauge Rebounds as Core Price Pressures Linger

2026-08-03 02:26 By Farida Husna 1 min. read

Australia's Melbourne Institute Monthly Inflation Gauge rose 1.0% month-on-month in July 2026, reversing a 0.4% decline in June and marking its first increase since April, pointing to renewed inflationary pressures.

The reading aligns with the Reserve Bank of Australia's June meeting minutes, which indicated that underlying price pressures were expected to intensify in the June quarter.

Official data showed headline inflation eased to 4.0% in May from 4.2%, mainly due to lower fuel prices.

However, underlying inflation remained persistent, with the trimmed mean accelerating to 3.6% from 3.4% as businesses passed through higher costs linked to Middle East tensions.

Governor Michele Bullock recently reiterated that underlying inflation remains too high and warned it could rise further as higher oil prices stemming from the Iran conflict feed into broader prices, reinforcing expectations that the RBA will remain cautious on policy easing.



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Australia Inflation Gauge Rebounds as Core Price Pressures Linger
Australia's Melbourne Institute Monthly Inflation Gauge rose 1.0% month-on-month in July 2026, reversing a 0.4% decline in June and marking its first increase since April, pointing to renewed inflationary pressures. The reading aligns with the Reserve Bank of Australia's June meeting minutes, which indicated that underlying price pressures were expected to intensify in the June quarter. Official data showed headline inflation eased to 4.0% in May from 4.2%, mainly due to lower fuel prices. However, underlying inflation remained persistent, with the trimmed mean accelerating to 3.6% from 3.4% as businesses passed through higher costs linked to Middle East tensions. Governor Michele Bullock recently reiterated that underlying inflation remains too high and warned it could rise further as higher oil prices stemming from the Iran conflict feed into broader prices, reinforcing expectations that the RBA will remain cautious on policy easing.
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