Australia's Inflation Rate Rises to 3.8% in June

Australia's annual inflation rate increased to 3.8% in the June 2024 quarter, up from 3.6% in the previous quarter, driven by rising costs in housing, food, and insurance. The Reserve Bank of Australia (RBA) had forecast this rate and is expected to meet next week to discuss potential interest rate hikes to control inflation. Economists predict no immediate rate hike, despite inflation being above the RBA's target range of 2-3%. Key contributors to inflation include a 7.3% rise in rents, a 14% increase in insurance premiums due to natural disasters, and significant hikes in food prices, particularly fruit and vegetables. The trimmed mean measure of underlying inflation, which excludes volatile items, slightly decreased to 3.9%. The federal government's recent cost of living relief measures and energy bill rebates have mitigated some of the inflationary pressures.