Economic Buzz: Australia's inflation cools to 3.8%

Australia's annual inflation rate unexpectedly eased to 3.8% in June, marking its softest pace since February, as lower fuel prices moderated transport costs and helped cool overall goods inflation. Monthly consumer prices also declined 0.1%, extending the previous month's fall and surprising markets that had anticipated an increase. Despite the moderation, underlying price pressures remained persistent, with services inflation accelerating to 4.0% and trimmed mean inflation holding at 3.6%, well above the Reserve Bank of Australia's 2?3% target range. The data suggests inflation is gradually easing, though sticky core price pressures may keep the RBA cautious on the policy outlook.

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