Australia's annual headline inflation rate fell to 3.5% in July, down from 3.8% in June, according to the Australian Bureau of Statistics' monthly inflation indicator. The trimmed mean inflation, a crucial measure of underlying inflation, also saw a decline, dropping to 3.8% from 4.1% in June.
The most significant contributors to the price increases in July were housing (+4%), food and non-alcoholic beverages (+3.8%), alcohol and tobacco (+7.2%), and transport (+3.4%).
However, the introduction of new commonwealth and state electricity rebates significantly impacted the overall inflation figure.
ABS acting head of prices statistics Leigh Merrington said the introduction of new commonwealth and state electricity rebates helped drive energy prices lower.
"The first instalments of the 2024-25 Commonwealth Energy Bill Relief Fund rebates began in Queensland and Western Australia from July 2024, with other states and territories to follow from August,” she said.
"In addition, state-specific rebates were introduced in Western Australia, Queensland and Tasmania.
"Altogether these rebates led to a 6.4% fall in the month of July. Excluding the rebates, electricity prices would have risen 0.9% in July.”