Australian consumer prices jumped by far more than forecast in July as electricity prices spiked due to the timing of government rebates, which has injected more volatility into this year’s series.
The Australian dollar
edged back above 65 cents. Investors were still confident the Reserve Bank of Australia will cut rates in November.
Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose 2.8% in July compared to a year earlier, up from 1.9% in June and well above median forecasts of 2.3%.
The trimmed mean measure of core inflation ran at an annual 2.7% in July, up from 2.1% in June. A measure excluding volatile items and holiday travel climbed to 3.2%, from 2.5%.
