Inflation hits three-month high following interest rate hike
Australia’s annual inflation rate has risen sharply to 4.0 per cent in August, up from 3.5 per cent in July, according to the latest Australian Bureau of Statistics data.
The increase adds fresh pressure on the Reserve Bank of Australia (RBA) as it considers the next move on interest rates.
However, underlying inflation remained unchanged. The trimmed mean measure stood at 3.6 per cent, suggesting that underlying price pressures have not accelerated at the same pace as headline inflation.
The latest figures have increased uncertainty over the RBA’s interest-rate path. Westpac has already forecast a 25-basis-point rate increase in November, which would take the cash rate to 4.60 per cent.
The Australian dollar also weakened following the inflation release as financial markets assessed the implications for future monetary policy.
The RBA will consider several additional indicators before its next decisions, including employment, household spending and the September inflation figures.
With inflation still above the RBA’s target range, Australian households and borrowers will be watching closely for signs of whether interest rates could rise again later this year.
Stay tuned with Aus News Lanka – the leading platform for news for Australians.
Source : 9 News
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