Annual inflation lifts 5.2 per cent in August
Stronger-than-expected inflation has fuelled expectations of another interest rate hike on Tuesday. Photo: AAP
Australia’s inflation rate shifted up again last month as widely expected, with higher prices at the petrol pump playing a role.
The Australian Bureau of Statistics consumer price index for August came in at an annual rate of 5.2 per cent, up from 4.9 per cent in July.
The headline result was in line with the 5.2 per cent lift expected by markets.
The indicator tracks the cost of buying the same basket of goods and services over time.
ABS head of price statistics Michelle Marquardt said inflation was still moderating when volatile items such as fuel, fruit and vegetables and travel were stripped out.
“When excluding these volatile items from the monthly CPI indicator, the annual rise of 5.5 per cent in August is lower than the annual rise of 5.8 per cent in July,” Ms Marquardt said on Wednesday
Automotive fuel prices rose 13.9 per cent compared to 12 months ago, up 1.9 per cent over the month.
Higher fuel prices were widely expected to show up in a higher monthly consumer price index reading.
The August edition also included several indicators of all-important services’ inflation, such as takeaway food and recreational services.
The stronger result will factor into the Reserve Bank’s interest rate decision, with more interest rate hikes on the cards if the data suggests inflation is proving persistent.
More emphasis is usually put in the quarterly numbers, however, which are due late next month – after the September cash rate call.
– AAP