Australian Inflation Outpaces Expectations, Underlying Pressure Persists

Australian consumer prices rose 3.5% through July 2026, above the 3.3% economists expected. The RBA's preferred underlying gauge — the trimmed mean, which strips out volatile price swings — held at 3.6% instead of easing. After three rate hikes this year to 4.35%, board minutes call another increase "quite possible." The 2.5% target looks increasingly distant.