Australia Q2 Inflation Misses Forecasts as RBA Says Labor Market Stays Tight
Updated
Updated · Bloomberg · Jul 30
Australia Q2 Inflation Misses Forecasts as RBA Says Labor Market Stays Tight
2 articles · Updated · Bloomberg · Jul 30
Summary
Second-quarter inflation came in below forecasts, with RBA Assistant Governor Sarah Hunter calling the result “a touch softer” than anticipated.
Hunter said the softer price data does not remove pressure on policymakers because inflation still sits above the top of the RBA’s 2%-3% target band.
Labor-market reports released over the past week also showed “a bit of tightness,” reinforcing the RBA’s view that domestic demand and wages pressures have not fully eased.
The combined signal leaves Australia’s central bank balancing slower-than-expected inflation against still-tight employment conditions in its policy outlook.