‘Dodged a bullet’: inflation eases to 3.8%, reducing chances of interest rate rise for Australia’s mortgage holders
Australian inflation eased to 3.8% in June, lower than market expectations, which has reduced the likelihood of an interest rate hike by the Reserve Bank of Australia. While price pressures remain, economists suggest the RBA may hold rates steady in August.
Why it matters
This data provides relief to Australian mortgage holders who have been facing significant financial pressure from consecutive interest rate increases.
Inflation dropped to 3.8% in the year to June 2026, from 4% in the previous month. Inflation dropped to 3.8% in the year to June 2026, from 4% in the previous month. Australian economy ‘Dodged a bullet’: inflation eases to 3.8%, reducing chances of interest rate rise for Australia’s mortgage holders ABS data shows inflation still too high but tracking lower than anticipated
Prefer the Guardian on Google Australian mortgage-holders have “dodged a bullet’, with the Reserve Bank now less likely to hike rates next month after new data showed inflation unexpectedly eased to 3.8%, in the year to June, from 4%.
The hotly anticipated consumer price report from the Australian Bureau of Statistics had been seen by some economists as a “make-or-break” moment ahead of the RBA’s upcoming rate decision on 11 August.
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