Australia's inflation dropped to 3.4% in November, below forecasts, but remains above the central bank's target.

Australia’s inflation rate fell to 3.4% in November, below the 3.6% forecast, driven by the end of energy rebates in Queensland, though the trimmed mean inflation—seen as a key indicator of underlying trends—slipped only slightly to 3.2%, remaining above the Reserve Bank’s 2% to 3% target. Persistent inflation in new dwelling prices, which rose 2.8% annually, and services continue to concern the RBA. Rents slowed slightly to 4% from 4.2%. With the monthly data still new and subject to seasonal shifts, the central bank is expected to wait for the December quarter report, due in late January, before deciding on interest rates. Some economists warn a 0.9% quarterly inflation rise could still be too high for comfort.