<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Inflation has risen to its highest level in a year, surprising economists and pouring some doubt on the assumption that another interest rate cut would be handed down by the end of the year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The monthly CPI indicator rose to 2.8 per cent for July, according to data from the Australian Bureau of Statistics released this morning – far higher than the roughly 2.3 per cent that had been expected.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>After months of moderating prices, which had seen the monthly inflation indicator ease to 1.9 per cent in June, today's result is the highest since July 2024 – before the Reserve Bank began cutting interest rates.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES: </span></strong><a href="https://www.9news.com.au/national/porepunkah-victoria-police-shooting-live-updates-latest-news-headlines-august-27/5ee3d7e6-9199-4943-b773-97824e918a23"><strong><span>No-fly zone for Victorian town in lockdown</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Measures of core inflation also spiked, with the trimmed mean – the RBA's preferred measure of underlying inflation – up from 2.1 to 2.7 per cent, and the CPI excluding volatile items and holiday travel rose from 2.5 to 3.2 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"That's a sharp reversal from the steady disinflation we've seen over recent months and takes inflation back towards the top of the RBA's target band... this suggests price pressures are proving stickier than policymakers had hoped, particularly in housing," eToro market analyst Josh Gilbert said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While the </span><a href="https://www.9news.com.au/finance/reserve-bank-australia-interest-rate-meeting-minutes-august-2025/5f977c19-4e91-46dc-aa22-051d53c88897" rel="" target="" title="RBA has flagged as recently as yesterday that a fourth interest rate cut could be handed down this year"><span>RBA has flagged as recently as yesterday that a fourth interest rate cut could be handed down this year</span></a><span>, it has also repeatedly said its decisions will be informed by data – and today's figures won't support any more relief from the central bank.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/inflation-july-2025-monthly-data-australia-interest-rate-implications/9d9c55a2-9bdf-4cc0-882c-77de0b448d53" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/brittany-higgins-to-learn-defamation-fate-over-posts/4ef8b9c3-6033-4849-978e-97ef62451dbc"><strong><span>Linda Reynolds wins Brittany Higgins defamation case</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span></span></strong><span>However, the monthly inflation read doesn't carry the same weight as the ABS's quarterly numbers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While the next quarterly data won't be published until October 29 – after the RBA's next monetary policy meeting – there will be another instalment of monthly figures before that interest rates decision on September 30. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The data will be a setback for those expecting continued easing after the rate cut earlier this month," Gilbert said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While the RBA has signalled more easing is likely, today's figures reinforce the board's cautious stance and reaffirms that fighting inflation is no easy task. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Markets still expect another cut before year-end, but if we see more reports similar to this, that expectation will diminish.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Let's be clear though, this is just one print. The board prefer to focus on quarterly data, but there's no doubt this will unsettle the board."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>:</span></em></strong><span> </span><em><strong><span>Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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