Australia's core inflation cools, providing strong support for the Reserve Bank of Australia to cut interest rates.

Jin10 data reported on July 30, the latest data shows that Australia's core inflation rate further cooled in the second quarter, providing a stronger basis for the Reserve Bank of Australia to potentially initiate monetary policy easing as early as August. Data released by the Australian Bureau of Statistics on Wednesday showed that the closely watched core inflation rate, excluding extreme fluctuations, rose by 0.6% quarter-on-quarter in the second quarter, lower than the expected 0.7%. Year-on-year, this indicator fell from 2.9% in the first quarter to 2.7%, in line with market expectations. Due to factors such as government subsidies that suppressed overall inflation data, making it difficult to accurately reflect price pressures in the economy, the Reserve Bank of Australia pays more attention to core inflation indicators. The core inflation rate has further declined to 2.7%, and only in the first quarter did it enter the Reserve Bank of Australia's set target range of 2%-3%, indicating that decision-makers can now gradually shift the policy focus from suppressing inflation to supporting economic growth.