Falling inflation levels have defied Reserve Bank predictions, alleviating fears another interest-rate hike is imminent. The latest Australian Bureau of Statistics data showed headline annual inflation falling to 3.8 per cent in June, down from four per cent a month earlier. “The federal government’s fuel excise relief measures, which contributed to lower automatic fuel prices in April and May, also remained in place.” “People shouldn’t expect that fuel excise support will continue beyond the weekend,” he said. “Ongoing conflict in the Middle East remains a threat to inflation, inflation expectations and hence the policy rate outlook.”