RBA Governor Michele Bullock has warned crucial inflation data may not come in as low as expected next week, casting some doubt over a potential interest rate cut in August.

However, such a call rests on crucial quarterly data released next week, and Bullock warned that figure could come in higher than hoped.

“We expect trimmed mean inflation to fall a little further in the June quarter in year-ended terms,” she told the Anika Foundation fundraising lunch on Thursday.

“However, the monthly CPI Indicator data, which are volatile, suggest that the fall may not be quite as much as we forecast back in May.

“We still think it will show inflation declining slowly towards 2.5 per cent, but we are looking for data to support this expectation.”

The news won’t be well received by many Australians who have been hit by high interest rates and cost-of-living pressures for the last three years.

However, while acknowledging the stress many Australians are under, Bullock said cost-of-living relief was on the way.

“Encouragingly, as inflation has slowed, the labour market has eased only gradually and the unemployment rate is relatively low,” she said.

“We also know that Australians continue to feel cost-of-living pressures, with the average level of prices now notably higher than it was just a few years ago. 

“That is why we want to make sure that inflation remains low and stable from here on in.” 

“Low and stable inflation is good for households, good for jobs, good for communities and good for the economy.”