Inflation in Australia has slowed less than anticipated, with consumer prices rising by 3.5% over the past year—a drop from 3.8% the prior month—raising concerns that the Reserve Bank may need to raise interest rates again to meet its 2.5% target. Economists warn that higher borrowing costs could burden millions of homeowners already facing financial strain. The latest data from the Bureau of Statistics suggests persistent inflationary pressures, complicating the central bank’s efforts to cool price growth without triggering economic slowdown. With expectations of a potential fourth rate hike this year, households and policymakers are closely watching the fallout.
Bureau of Statistics says CPI was 3.5% in July, casting doubt on Reserve Bank meeting its 2.5% inflation target without further hikeFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastFears are growing that the Reserve Bank will hit millions of mortgage holders with a fourth rate hike this year, after inflation eased in July but by far less than expected.Consumer prices climbed by 3.5% through the year, down from 3.8% in the previous month, according to the Australian Bureau of Statistics. Continue reading...
