Inflation jumps to 4pc as RBA raises rates to 15-year high
Annual headline inflation jumped to 4% in August, up from 3.5% in July, driven by housing and fuel prices.
Headline inflation surged to 4 per cent in August, the biggest jump since July, as housing and fuel costs pushed prices higher. New dwelling prices rose 5.4 per cent over the year as builders passed on costs for materials and labour.
Automotive fuel jumped 14.8 per cent in August alone, driven by higher world oil and the end of the federal government's fuel excise relief. The Reserve Bank lifted the cash rate to 4.6 per cent this week, its highest level in 15 years, in an attempt to drag inflation back down.
Underlying inflation, the RBA's preferred measure, stayed flat at 3.6 per cent for the third month running. Some economists believe another rate rise is likely, though RBA governor Michele Bullock said it remains uncertain whether the four increases already delivered will be enough.
- 4.6 per cent, highest in 15 years
- Cash rate
- 5.4 per cent annual rise
- New dwelling prices
- 14.8 per cent in August
- Automotive fuel rise
Why it mattersHigher rates mean more expensive mortgages, loans and savings rates. Inflation that stays high risks becoming embedded in the economy.
AustraliaAustralian borrowers face higher home loan repayments and business costs, while savers benefit from better deposit rates. Workers may expect more pressure on wage negotiations.
✓ Claims checked against the source. checked 1 d ago
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