The monthly headline consumer price index (CPI) in Australia decelerated to 3.5 per cent year-on-year in July, down from 3.8 per cent in June, slightly exceeding analysts’ expectations of 3.4 per cent. This slowing inflation is significant as the Reserve Bank of Australia (RBA) has maintained the cash rate steady since November, seeking signs of easing price pressures to align with its 2 to 3 per cent target range. Despite global central banks beginning to ease monetary policies, the RBA has ruled out rate cuts for the remainder of the year, although bond markets are still anticipating a potential rate reduction by Christmas. Key upcoming economic indicators include the retail sales report for July, due on August 30, and the second-quarter GDP figures expected next week.
At 11:35am, the S&P/ASX 200 is 0.7 per cent lower at 8014.9.
The SPI futures are pointing to a fall of 32 points.
Best and worst performers
The best-performing sector is Consumer Staples, up 0.55 per cent. The worst-performing sector is Communication Services, down 1.94 per cent.
The best-performing large cap is ResMed (ASX:RMD), trading 4.47 per cent higher at $35.08. It is followed by shares in Worley (ASX:WOR) and AGL Energy (ASX:AGL).
The worst-performing large cap is NEXTDC (ASX:NXT), trading 3.93 per cent lower at $17.12. It is followed by shares in Pilbara Minerals (ASX:PLS) and Mineral Resources (ASX:MIN).
Commodities and the dollar
Gold is trading at US$2556.40 an ounce.
Iron ore is 1.0 per cent higher at US$101.10 a tonne.
Iron ore futures are pointing to a 0.66 per cent rise.
One Australian dollar is buying 68 US cents.