The Reserve Bank of Australia is more likely to keep the cash rate on hold next week after underlying inflation came in only slightly above official forecasts in June.
Trimmed mean inflation, the RBA’s preferred measure of underlying price pressures, eased to 3.9 per cent in June from 4 per cent in March, the Australian Bureau of Statistics said on Wednesday.
The outcome was only slightly higher than the RBA’s official forecast for trimmed mean inflation (3.8 per cent) and softer than market expectations (4 per cent). Trimmed mean inflation in the three months to June was 0.8 per cent, in line with RBA forecasts.
