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Australia's August CPI rises 0.3% month-on-month

Source: Australia's inflation tops one-year high in August, rate cut bets soften (2025-09-25)

Australia's consumer price index (CPI) increased by 0.3% in August, marking a slowdown from the previous month, according to official data. The annual inflation rate eased to 4.6%, down from 4.9% in July, driven by softer core inflation figures, which rose 0.2% month-on-month and 4.3% annually. The Reserve Bank of Australia (RBA) has been closely monitoring inflation trends as it considers future monetary policy adjustments. The report indicates that while some price pressures are easing, inflation remains above the RBA's target range, prompting ongoing discussions about interest rate hikes. Analysts suggest that the moderation in core inflation could provide the central bank with some flexibility, but they also warn that inflationary pressures persist, especially in housing and energy sectors. The data underscores the complex balancing act faced by policymakers aiming to curb inflation without stifling economic growth.

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