Core inflation rises, rate hike ‘most likely’ in August

The latest CPI data that shows core inflation rising adds to the case for a rate hike, with Australia looking set for incredibly weak growth for the rest of the year.

The Consumer Price Index (CPI) has risen to 4.0 percent, down from 4.2 percent in the 12 months to April, while core inflation has risen to 3.6 percent from 3.4 percent. According to the Australian Bureau of Statistics (ABS), the largest contributor to annual inflation in May was Housing, which rose by 6.5 percent, followed by the Food and non-alcoholic beverages and Transport categories, both of which rose 3.3 percent. The ABS attributes the rise in housing annual inflation to "rising cost...

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Authors: Brendan Rynne

Published Date: 25 June 2026