Inflation Jumps Back to 4%. Are More Interest Rate Hikes Coming?
Housing and fuel costs drove the increase, while underlying inflation held at 3.6% and markets raised expectations for another rate hike.
- On Tuesday, the Reserve Bank lifted the official cash rate to 4.6 per cent as Australian Bureau of Statistics figures showed annual headline inflation jumped to 4 per cent in August from 3.5 per cent.
- The Reserve Bank has lifted interest rates four times this year as headline inflation remained above the 2-3 per cent target for the 13th straight month, pressuring policymakers to act.
- Housing costs rose 5.7 per cent, the largest contributor to annual inflation, while automotive fuel prices surged 14.8 per cent in August, driving transport costs up 5.6 per cent for the year.
- During a press conference in Melbourne on Wednesday, Prime Minister Anthony Albanese cited $178 billion in government savings while criticizing the Coalition's promise of $110 billion in new spending.
- The Reserve Bank warned it would lift rates "further if needed" to control inflation, with the Monetary Policy Board set to meet in early November to consider another increase.
18 Articles
18 Articles
Australia's Aug inflation rises to 4.0%, slightly below expectations
Australia’s annual inflation rate accelerated to a three-month high of 4.0% in August 2026, up from 3.5% in July, driven primarily by surging transport costs and housing inflation. The reading came in slightly below market expectations of 4.1%
Australia inflation stubbornly high in August, defying run of rate hikes
By Stella Qiu and Wayne Cole SYDNEY, Sept 30 (Reuters) - Australian inflation accelerated in August as fuel costs surged anew and price pressures remained broadly based, showing little impact as yet from a run of interest rate increases this year. Stic...
Inflation jumps back to 4%. Are more interest rate hikes coming?
Inflation is back in focus on Wednesday after the latest Consumer Price Index (CPI) figures were released. The Australian Bureau of Statistics (ABS) published its August inflation report this morning, giving investors plenty to digest. The release comes just one day after the Reserve Bank of Australia (RBA) announced its latest interest rate decision. With inflation still a key concern for the central bank, today's numbers could play a part in…
Sydney Morning Herald
Inflation surges after rate hike
Inflation jumped once again in August, as the RBA weighs up whether to deliver yet another rate hike.
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