The Australian Consumer Price Index (CPI) for August has remained at 5.2% year-on-year, matching expectations. The CPI measures changes in the price of a basket of goods and services over time, providing an indication of inflation levels. However, there was a slight increase in the monthly rise, from 0.3% in July to 0.6% in August.
When looking at core measures, which exclude certain volatile items, such as fruit and vegetables, automotive fuel, and holiday travel and accommodation, the August CPI was 5.5% year-on-year. This indicates a decrease from the previous month’s figure of 5.8%. This decline in underlying inflation is likely to be well-received by the Reserve Bank of Australia (RBA), as it suggests a stabilization or potential easing of inflationary pressures.
The trimmed mean CPI, another core measure, reported a slightly higher figure of 5.6%. This indicator excludes the extreme price movements of the most volatile components in the CPI basket. Overall, while the CPI figures remain elevated, the decrease in underlying inflation is seen as positive news, indicating a potential slowdown in price growth, which may be advantageous for the RBA’s monetary policy decisions.