Australia: Inflation slows in July from the prior month
Latest reading: Consumer prices increased 3.5% on a year-on-year basis in July, following a 3.7% increase in the previous month. July’s reading was the weakest since August 2025 but still above the Central Bank’s target of 2.0–3.0%.
Relative to the prior month’s data, there were milder price pressures for clothing (+4.8% on a year-on-year basis vs +5.0% in June) and housing (+5.0% vs +6.8% in June). In contrast, price pressures were higher for transportation in July (+1.6% vs -0.4% in June).
Lastly, consumer prices rose 1.02% in July on a month-on-month basis, following a 0.06% decline in the previous month.