Australias consumer price index rose by 2.8% year-on-year in July, the fastest pace since July 2024, data from the Australian Bureau of Statistics showed on Wednesday morning. The increase was higher than market expectations of a 2.3% rise and above the previous reading of 1.9%.

The data highlight mounting inflationary pressures on policymakers at the Reserve Bank of Australia, reducing the likelihood of an interest rate cut in September.

This release is positive for the Australian dollar.