Economic Buzz: Australia inflation gauge slows to 0.5% in August

Australia?s Melbourne Institute Monthly Inflation Gauge rose 0.5% month-on-month in August, slowing sharply from 1.0% in July and signalling some moderation in price pressures. Annual inflation also eased to 3.5% in July, but remained above the RBA?s 2?3% target. With underlying inflation still elevated and risks from the Middle East conflict, AI boom and weak productivity, the RBA is expected to maintain a cautious policy stance as inflation is projected to return to target only gradually by late 2027.

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