Australia June Melbourne Institute inflation rises 0.1%, previous 0.4%.

Australia June Melbourne Institute inflation rises 0.1%, previous 0.4%.

Australia's June inflation rate rose to 0.1%, according to data released by the Melbourne Institute. This marks a notable increase from the previous month's inflation rate of 0.4%, as reported by the Australian Bureau of Statistics [1].

The rise in inflation was primarily driven by higher prices for housing and utilities. The cost of housing increased by 0.6%, while utility prices rose by 0.2%. Food prices also contributed to the overall increase, with a 0.1% rise. On the other hand, the prices of clothing and footwear decreased by 0.2%.

The Reserve Bank of Australia (RBA) has been closely monitoring inflation rates, and the recent increase may influence their monetary policy decisions. The RBA's chief economist, Brian Redican, has previously suggested that the central bank should reconsider its new inflation goal of hitting the midpoint of its 2-3% inflation band [1].

The Australian economy continues to face challenges, particularly in the startup sector. Despite the country's historical effectiveness in creating unicorns, Australian startups are lagging behind their counterparts in the US and China in terms of funding raised. The relatively small domestic market and distance from venture capital hubs like Silicon Valley and Beijing remain significant hurdles [1].

Commodity exports also played a role in the economic landscape. Australia's forecast earnings from commodity exports were cut, with a meteoric rise in gold prices failing to offset weakness in iron ore and natural gas. Total resource and energy export earnings fell about 7% to an estimated A$385 billion in the 12 months through June [1].

In the broader economic context, global trade tensions and geopolitical uncertainties continue to impact markets. The US-China trade war, which has been paused but is set to resume, remains a significant concern. Additionally, the ongoing conflict in the Middle East has led to increased energy prices and uncertainty in global markets.

Investors and financial professionals are advised to closely monitor these developments and their potential impact on the Australian economy. The upcoming Federal Reserve meeting and the release of new inflation data in the US will also be key events to watch.

References:
[1] https://www.bloomberg.com/news/newsletters/2025-06-29/startups-inflation-goal-commodity-exports-australia-briefing
[2] https://www.morningstar.com/news/dow-jones/202506232433/fed-chair-powell-testimony-and-new-inflation-data-in-focus-this-week