FX.co ★ Australia’s MI Inflation Gauge Rebounds Sharply in July, Snapping June Decline

Australia’s inflation pulse showed a marked turnaround in July, with the Melbourne Institute (MI) Inflation Gauge rising 1.0% month-over-month, following a 0.4% decline in June 2026. The latest data, updated on 3 August 2026, point to a renewed pick-up in price pressures after a brief setback the previous month.

The July reading contrasts sharply with June’s -0.4% month-on-month print, which had suggested a temporary easing in consumer price momentum. As the MI Inflation Gauge measures the change in prices compared with the previous month, the move from negative to solidly positive territory underscores a rapid swing in short-term inflation dynamics.

Investors and policymakers will be closely watching whether July’s 1.0% increase marks the start of a renewed inflation uptrend or a one-off correction following June’s weakness, as the MI series often provides an early signal of broader inflation conditions in the Australian economy.