Updated · The Australian Financial Review · Aug 26
ASX 200 Slips 0.1% as July Inflation Tops Forecast, Lifting RBA Hike Odds
Updated
Updated · The Australian Financial Review · Aug 26
ASX 200 Slips 0.1% as July Inflation Tops Forecast, Lifting RBA Hike Odds
3 articles · Updated · The Australian Financial Review · Aug 26
Summary
The S&P/ASX 200 fell 13 points to 9,151.60 by 2:03 p.m. AEST, reversing an earlier gain of more than 0.6% after Australia’s July inflation data came in hotter than expected.
July CPI slowed to 3.5% from 3.8% in June but beat economists’ 3.3% forecast, while trimmed-mean inflation held at 3.6% — a sign underlying price pressures remain sticky.
That reading kept the risk of another Reserve Bank of Australia rate increase in play, with interest-rate markets repricing more hawkishly after 75 basis points of hikes earlier this year.
Analysts said the inflation surprise was a blow to an already weak economy, underscoring how persistent price pressures are complicating the outlook for equities and monetary policy.