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Australian Inflation up More than Expected in July
Core inflation held at 3.6% and fuel prices rose 7.5%, increasing pressure on the Reserve Bank of Australia to consider another rate hike.
- On Wednesday, the Australian Bureau of Statistics reported that the consumer price index rose 1.0% in July, exceeding forecasts of 0.8% and pushing annual inflation to 3.5%.
- Automotive fuel prices jumped 7.5% in July after falling three months prior, driven by higher world oil prices and the partial unwinding of the federal government's fuel excise relief measures.
- Minutes from the RBA's August board meeting, released on Tuesday, showed the Reserve Bank of Australia was concerned about upside inflation risks, while trimmed mean core inflation held steady at 3.6%.
- Market analysts now estimate a 30% to 40% risk of an RBA rate hike next month, with chief economist David Bassanese of Betashares calling the result an "unfortunate kick in the guts" for the economy.
- Federal Treasurer Jim Chalmers called the data a "promising result in the face of all of this global uncertainty," though he acknowledged households remain under pressure as inflation bounces around in coming months.
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16 Articles
16 Articles
Australia inflation runs hot in July, adding to rate hike risk
Australian consumer prices rose more than expected in July as fuel and travel costs jumped, data showed on Wednesday, while core inflation also exceeded forecasts and added to the risk of another hike in interest rates.
·London, United Kingdom
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'Unfortunate kick in the guts' as inflation data increases RBA rate hike risk
Inflation is continuing to cool with the annual headline rate rising to 3.5 per cent in July, but some economists say it has increased the risk of another interest rate hike by the Reserve Bank of Australia this year.
·Ultimo, Australia
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Coverage Details
Total News Sources16
Leaning Left1Leaning Right5Center6Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
C 50%
R 42%
Factuality
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