July inflation rate rises more than expected, supporting the Reserve Bank of Australia to keep interest rates unchanged in September.

According to the Wise Finance APP, Australia's July inflation rate rose higher than expected, further approaching the upper limit of the 2%-3% target range set by the Reserve Bank of Australia. Official data released on Wednesday showed that Australia's July Consumer Price Index (CPI) rose by 2.8% year-on-year, the highest annual increase since July 2024, and significantly higher than June's 1.9%. Economists had previously forecasted an increase of 2.3%. The trimmed mean index favored by the Reserve Bank of Australia (excluding volatile items such as food and energy) rose by 2.7%, higher than the previous month's 2.1%. This provides a reason for the bank to hold steady in September.