Australia’s core inflation remains above RBA’s target band

The persistence of core inflation, during a period where growth is modest and slowing and geopolitical and economic uncertainty is high, will keep the RBA Board awake at night, writes KPMG Australia Chief Economist Brendan Rynne.

Australia's Consumer Price Index rose 3.8 percent in the 12 months to June. That's down from 4 percent the previous month and below forecasts. However, core inflation was steady at 3.6 percent, which is well above the RBA's target band. The good news is that inflation has eased, the not-so-good news is that it remains stubbornly high. This inflation print supports Governor Bullock's observation that the RBA board will have some difficult decisions to make. The likelihood of a further rat...

Sign in below or register now to read the full article

Authors: Brendan Rynne

Published Date: 30 July 2026