Australian inflation rose to 4 per cent in August, strengthening the prospect of another Reserve Bank rate increase on November 3.
The consumer price index climbed from 3.5 per cent in July, with the withdrawal of Federal Government fuel tax relief coming shortly before tensions escalated again in the Middle East.
Automotive fuel prices were 13.5 per cent higher than a year earlier. On a monthly basis, they rose by 14.8 per cent in August.
Headline inflation has now remained above the Reserve Bank of Australia’s 2 to 3 per cent target for 13 consecutive months.
The figures were released a day after the RBA raised interest rates for the fourth time this year, taking the cash rate to 4.6 per cent — its highest level in 15 years.
A further increase would lift the rate to 4.85 per cent, an 18-year high, adding to expectations of a November hike.
