Australian inflation jumps to 3.6%, well above forecast
Trimmed mean inflation came in at 3.6% versus 2.8% expected, an 80-basis-point miss.
Australian inflation came in much higher than expected in July. Trimmed mean inflation hit 3.6% versus the 2.8% forecast, an 80-basis-point shortfall.
The actual reading is also 80 basis points higher than June last year. Bond markets reacted sharply, pushing the Australian ten-year rate to a 15-year high of around 5.3%.
The US ten-year hit 5%, the highest level since 2007, after the Federal Reserve raised rates by 25 basis points this week.
- 3.6%
- Trimmed mean inflation
- 2.8%
- Forecast inflation
- 5.3%
- Australian 10-year rate
- 5%
- US 10-year rate
Why it mattersHigher inflation typically triggers rate rises that increase costs for borrowers and affect economic growth.
AustraliaAustralians with mortgages face pressure for higher interest rates and monthly repayments as the RBA responds to inflation.
✓ Claims checked against the source. checked 4 d ago
