The Australian August monthly Consumer Price Index (CPI) has remained at 5.2% year-on-year (y/y), in line with expectations and the same as the previous month. However, there has been a slight increase in the month-on-month (m/m) rise, with a 0.6% increase compared to the 0.3% increase seen in July.
In terms of core measures, the August CPI excluding Fruit and vegetables, Automotive fuel, and Holiday travel and accommodation has shown a y/y increase of 5.5%, lower than the previous month’s figure of 5.8%. This decline in underlying inflation may be seen as positive by the Reserve Bank of Australia (RBA).
Additionally, the Trimmed mean CPI, a measure that excludes the most significant price movements, has recorded a 5.6% growth rate. Overall, while the overall CPI remains steady, the modest increase in m/m rise and the decline in core measures may offer some relief and encouragement for the RBA, as it signals some stabilization in inflation rates.