Breakfast Briefing | 2 June 2026 | Hormuz Standoff & Australian Inflation Dips

Australian inflation eased in May, with the Melbourne Institute Monthly Inflation Gauge falling 0.3% on lower transport and fuel costs following the excise tax rollback. The annual rate now sits at 4.4%, offering the RBA a modest data point ahead of its next decision. However, the latest Australian factory PMI shows new orders falling at their sharpest pace since October, while selling price inflation has hit a 45-month high.Globally, the picture is more turbulent. Iran has reportedly suspended communications with Washington and is threatening to fully close the Strait of Hormuz, sending oil higher. Factory activity across the US, Japan, South Korea and Taiwan all expanded sharply in May, but growth is being driven largely by stockpiling as firms race to beat rising costs and supply chain delays.Key figures:● AUD at 71.6 USc● Australian 10-year bond yield at 4.90%● US 10-year Treasury at 4.47%● Gold down to USD 4,491/oz● US oil up to USD 91.50/bbl, Brent at USD 94.50/bbl● Bitcoin at USD 71,684, down 2.5%● South Korean exports at record 88,000 million US Dollars, up 53% year-on-yearFull report: https://www.interest.com.au/economy/691/hormuz-unresolved-global-factories-expand-stockpiling-korean-exports-impress-australian#BreakfastBriefing #RBA #InterestRates #AustralianEconomy #interestcomau #Inflation #OilPrices #Hormuz #GlobalMarkets #SupplyChain