The latest data on inflation from the Australian Bureau of Statistics (ABS) increases the likelihood that the Reserve Bank of Australia (RBA) could cut its short-term cash rate at its next meeting in August. As we noted last week, after lowering the cash rate to a 50-year low of 2.75 percent in early May, the RBA has held off on making subsequent cuts.

Although the RBA tends to make rate cuts in consecutive months, further action was forestalled by better-than-expected economic data prior to its June meeting, and then the long-awaited tumble in the Australian dollar prior to its July meeting.

But the consumer price index (CPI) rose 0.4 percent sequentially during the second quarter, a tenth of a percentage point below economists’ expectations. And the year-over-year increase of 2.4 percent also fell short of expectations by the same amount.

According to economists at Westpac, one of the biggest surprises was the barely perceptible rise in overall food prices–just 0.1 percent versus expectations of 1.3 percent. The ABS said that a fall in fruit prices of 3.4 percent more than offset the 3.3 percent rise in vegetable prices, the latter of which was due to poor growing conditions.

The component whose decline had the greatest impact on the CPI was recreation, which fell 0.8 percent, largely due to a 4 percent drop in domestic holiday travel. Recreation was down 0.1 percent from a year ago. Fuel prices also fell 3.1 percent and were the second largest contributor on the downside.

On the upside, meanwhile, housing had the largest contribution, with a rise of 0.6 percent following last quarter’s increase of 1.2 percent. Rents suddenly accelerated 1.1 percent versus 0.8 percent in each of the three previous quarters. Overall, housing is up 5.3 percent year over year.

The category with the single largest percentage increase was clothing and footwear, which climbed 2.7 percent after the prior quarter’s decline of 3.9 percent. This category came in second, after housing, in terms of its positive contribution to the CPI.

Westpac expects continued weakness in the aussie to lead to additional price increases for clothing during the second half of the year. Historically, clothing tends to command a premium in the domestic market relative to other countries. Nevertheless, this category is down 0.3 percent year over year.

This was the third consecutive quarter in which inflation came in below the consensus forecast. Last quarter, the CPI rose 0.4 percent, while in the fourth quarter the CPI increased just 0.2 percent. Although inflation remains within the RBA’s target band of 2 percent to 3 percent, the lower-than-expected result combined with other weakening economic data could compel the central bank to ease further.

But while many economists believe there are sufficient data to support a cut, most believe the RBA’s decision will be a close call. That’s due, in part, to the fact that core inflation, which strips out volatile components and is, therefore, the central bank’s preferred measure of inflation, actually exceeded projections by increasing 0.6 percent quarter over quarter.

Still, Westpac believes the RBA is poised to cut its growth forecast for 2014 to 2.75 percent, which is below the country’s long-term annual growth rate of 3 percent. So even if the central bank decides to hold the line in August, more stimulus is eventually on the way.

The Roundup

Here’s when AE Portfolio Holdings will report their next sets of financial and operating numbers. Some have “confirmed” dates, while for others we’ve provided an “estimate.”

For most, this will cover the full fiscal year ending June 30, 2013. We’ve noted for others that report on a different schedule the period to which the announcement pertains.

Conservative Holdings

• Aberdeen Asia-Pacific Income Fund (NYSE: FAX)–N/A (fund, reports holdings on a quarterly basis)
• AGL Energy Ltd (ASX: AGK, OTC: AGLNF, ADR: AGLNY)–Aug. 21, 2013 (estimate)
• APA Group (ASX: APA, OTC: APAJF)–Aug. 21, 2013
• Australand Property Group Ltd (ASX: ALZ, OTC: AUAOF)–July 24, 2013 (2013 H1, confirmed)
• Australia & New Zealand Banking Group Ltd (ASX: ANZ, OTC: ANEWF, ADR: ANZBY)–April 30, 2013 (FY 2013 H1, confirmed)
• Cardno Ltd (ASX: CDD, OTC: COLDF)–Aug. 13, 2013 (estimate)
• CSL Ltd (ASX: CSL, OTC: CMXHF, ADR: CMXHY)–Aug. 21, 2013 (estimate)
• Envestra Ltd (ASX: ENV, OTC: EVSRF)–Aug. 22, 2013 (estimate)
• GPT Group (ASX: GPT, OTC: GPTGF)–Aug. 12, 2013 (2013 H1, estimate)
• M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF)–Aug. 26, 2013 (estimate)
• Ramsay Health Care Ltd (ASX: RHC, OTC: RMSUF)–Aug. 22, 2013 (estimate)
• SMS Management & Technology Ltd (ASX: SMX, OTC: SMSUF)–Aug. 14, 2013 (estimate)
• Telstra Corp Ltd (ASX: TLS, OTC: TTRAF, ADR: TLSYY)–Aug. 8, 2013 (confirmed)
• Transurban Group (ASX: TCL, OTC: TRAUF)–Aug. 6, 2013 (estimate)
• Wesfarmers Ltd (ASX: WES, OTC: WFAFF, ADR: WFAFY)–Aug. 15, 2013 (estimate)

Aggressive Holdings

• Amalgamated Holdings Ltd (ASX: AHD, OTC: None)–Aug. 22, 2013 (estimate)
• Ausdrill Ltd (ASX: ASL, OTC: AUSDF)–Aug. 28, 2013 (estimate)
• BHP Billiton Ltd (ASX: BHP, NYSE: BHP)–Aug. 21, 2013 (estimate)
• GrainCorp Ltd (ASX: GNC, OTC: GRCLF)–May 16, 2013 (FY 2013 H1, confirmed)
• Mineral Resources Ltd (ASX: MIN, OTC: MALRF)–Aug. 15, 2013 (estimate)
• Newcrest Mining Ltd (ASX: NCM, OTC: NCMGF, ADR: NCMGY)–Aug. 12, 2013 (estimate)
• Oil Search Ltd (ASX: OSH, OTC: OISHF, ADR: OISHY)–Aug. 12, 2013 (2013 H1, estimate)
• Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY)–Aug. 22, 2013 (estimate)
• Rio Tinto Ltd (ASX: RIO, NYSE: RIO)–Aug. 8, 2013 (2013 H1, confirmed)
• Spark Infrastructure Group (ASX: SKI, OTC: SFDPF)–Aug. 26, 2013 (2013 H1, estimate)
• Woodside Petroleum Ltd (ASX: WPL, OTC: WOPEF, ADR: WOPEY)–Aug. 21, 2013 (2013 H1, estimate)
• WorleyParsons Ltd (ASX: WOR, OTC: WYGPF, ADR: WYGPY)–Aug. 28, 2013 (estimate)