MNI BRIEF: Aussie Monthly CPI Tracks Higher

Australia’s monthly CPI indicator rose 3% y/y in August, up 20 basis points from July, while the trimmed mean measure slowed to 2.6% from 2.8%, the Australian Bureau of Statistics said Wednesday. 

The headline result was 10 basis points above market expectations. “The 3.0% annual CPI inflation to August was up from 2.8% in July, marking the highest annual rate since July 2024,” said Michelle Marquardt, ABS head of price statistics.

Housing (+4.5%), food and non-alcoholic beverages (+3.0%), and alcohol and tobacco (+6.0%) were the largest contributors to annual inflation. CPI excluding volatile items and holiday travel rose 3.4% y/y in August, compared with 3.2% in July.

The RBA expects trimmed mean, its preferred inflation metric, at 2.6% by the December quarter. (See MNI RBA WATCH: Bullock Points Toward Further Cuts)