Australia's monthly CPI data – slowing rate of inflation is an "encouraging development"

<p>Australian July inflation data was published yesterday, dropping well under the median estimate:</p><ul><li><a href="https://www.forexlive.com/centralbank/australian-july-inflation-data-49-yy-vs-52-expected-20230830/" target="_blank" rel="follow" data-article-link="true">Australian July inflation data 4.9% y/y (vs. 5.2% expected)</a></li></ul><p>ING on the result:</p><ul><li>The headline inflation rate has now fallen below 5% which will encourage thoughts that the RBA tightening cycle has peaked – though progress over the next few months will be harder. Our final 25bp rate hike call for 4Q23 is hanging by a thread</li></ul><p>ANZ:</p><ul><li>The monthly Consumer Price Index (CPI) indicator for July 2023 was below the market and our expectation of 4.9% y/y, which is an encouraging development ahead of Q3 CPI. </li><li>While electricity prices jumped in July (6.0% m/m including rebate impacts) and rents continued to accelerate, the annual increase in overall housing costs was broadly stable (7.3% y/y in July vs 7.4% in June).</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.