Australia May CPI Preview Shows Sticky Core Inflation at 3.6%

The latest development is Westpac's May CPI preview, forecasting trimmed-mean inflation rising to 3.6% y/y and keeping the RBA on alert. This follows the June 16 decision to hold the cash rate at 4.35% after three earlier hikes, with the central bank explicitly warning that further tightening remains possible if June-quarter data stay elevated. Economic weakness is evident with GDP growth at 0.3% and unemployment at 4.5%, yet sticky inflation and potential oil-price risks continue to support a hawkish stance.