June 26, at present, everyone in the market is focusing on the Australian May inflation indicator released on Wednesday, because the RBA recently mentioned the data in its interest rate hike rationale.
Ben Jarman, chief economist for Australia and New Zealand at JPMorgan, expects Australia’s inflation report to show that price pressures in the country have eased, with annualized inflation falling to 5.9% in May from 6.8% in April.
Easing price pressures in the travel, fuel and retail sectors would underpin the result, he said.
Jarman said he still expected the RBA to hike rates further in July, but added that the decision would be balanced.