Australia’s monthly CPI accelerated from 2.8% yoy to 3.0% yoy in August, above expectations of 2.8% yoy and the highest reading since July 2024. The rise was driven by housing (+4.5%), food and non-alcoholic beverages (+3.0%), and alcohol and tobacco (+6.0%).
Core inflation showed stickier trends. CPI excluding volatile items and holiday travel rose from 3.2% yoy to 3.4% yoy. Trimmed mean edged down slightly to 2.6% from 2.7%, but remain well above June’s 2.1% yoy.
RBA is widely expected to hold interest rate unchanged next week. But the stronger core reading will keep November’s meeting live, with rate cut expectations now tempered by concerns that inflation may not be easing as quickly as hoped.
, food and non-alcoholic beverages (+3.0%), and alcohol and tobacco (+6.0%).){kind=link}