Jul 29, 2026 – 11.59amPressure on the Reserve Bank board to lift interest rates again has eased after underlying inflation undershot forecasts in the June quarter, even as the cost of building a new home rose at its fastest pace in almost three years.Trimmed mean inflation – the RBA’s preferred measure of underlying inflation – increased to 3.6 per cent in June from 3.5 per cent in March, the Australian Bureau of Statistics said on Wednesday. The outcome was below market expectations and weaker than the RBA’s official forecast of 3.8 per cent.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Softer inflation gives RBA room to hold rates
The weaker-than-expected rise in underlying inflation suggests the RBA board has more room to breathe after already increasing this cash rate three times this year.
114 words~1 min read
