Australia’s inflation gauge accelerated last month, driven by rising fuel prices, making clear the battle to combat rising home prices is not over.
The consumer price index for August hit 5.2% annually, according to the Bureau of Statistics, up from 4.9% the previous month, erasing recent progress in reducing inflation.
The jump in inflation could spark debate about another interest rate hike, although monthly figures are volatile and policymakers may overlook an oil price rise if it proves temporary.
The Reserve Bank expects the inflation target range of 2-3% to be reached by mid-2025.
The RBA board will meet next week to make its first decision on rates under new governor Michelle Bullock. The board has previously noted that the official cash rate of 4.1% may need to rise further if inflation proves more persistent than expected.
The global stock market has been shaky recently amid concerns that borrowing rates will need to remain higher for an extended period to combat persistent inflation.
More to come.