Economists Express Caution Despite Drop in Australia’s Inflation Rate

Economists are raising concerns about underlying inflation, particularly the trimmed mean inflation rate, which stands at 3.5 percent.

People shop for fresh produce at the Queen Victoria Market in Melbourne, Australia on July 4, 2023. William West/AFP via Getty Images

Australia’s inflation rate has slowed to 2.8 percent, marking its lowest level since March 2021 and returning to the Reserve Bank’s target range for the first time in three years.

This drop is largely attributed to lower petrol prices and cost-of-living assistance measures aimed at easing household financial burdens.