Australia's central bank expects underlying inflation to fall faster than previously expected as it downgraded the economic outlook, although a still tight labour market is likely to create some lingering price pressures.

Commonwealth Bank, Westpac, ANZ, and National Australia Bank—announced 25 basis point interest rate cuts on Tuesday, following the Reserve Bank of Australia’s (RBA) decision to lower its benchmark rate for the first time in over four years.

Australia measures its inflation rate primarily using the Consumer Price Index (CPI), which is calculated by the Australian Bureau of Statistics.