Australia’s inflation data for October showed signs of moderation, with the monthly CPI rising 2.1% year-on-year, undershooting the expected 2.3%. This marks a slight cooling in consumer price growth, suggesting the Reserve Bank of Australia’s (RBA) recent policy tightening may be taking effect.
The softer-than-anticipated inflation figure could provide the RBA with more flexibility as it weighs further interest rate decisions. With energy and housing costs stabilizing, the central bank may opt to hold rates steady in the near term. However, economists caution that global economic pressures and domestic wage growth remain key risks to the inflation outlook.
