Australian Inflation Beats Forecasts at 3.5%, Underlying Measure Stuck at 3.6%

Australian consumer prices rose 3.5% in the year to July 2026, above the 3.3% economists expected. The RBA's preferred underlying measure, the trimmed mean, held at 3.6% against forecasts it would ease. The RBA has already raised rates three times in 2026 to 4.35%. Board minutes show members deemed another hike "quite possible," with the 2.5% target increasingly distant.