Australian inflation slows more than forecast, reinforcing pause case

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Australian inflation slows more than forecast, reinforcing pause case
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SYDNEY (Reuters) - Australia's inflation slowed to a 17-month low in July, driven by falls in holiday travel and fuel, while a measure of core ...

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Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index rose 4.9% in the year to July, down from 5.4% the previous month and under market forecasts of 5.2%. The Australian dollar slipped 0.3% to $0.6460 while three-year bond futures rallied 8 ticks to 96.26.

"The sharp fall in inflation in July confirms that the RBA is done tightening and raises the chances that the Bank will start to ease policy earlier than most," said Marcel Thieliant, an economist at Capital Economics.

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