Australian inflation rises to 4 per cent

Canberra (ANTARA) - Australia’s annual inflation rate rose to 4 per cent in August, according to official data released on Wednesday (30/9).

The Australian Bureau of Statistics (ABS) stated that the Consumer Price Index (CPI) increased by 4 per cent over the 12 months leading up to August, up from 3.5 per cent in July.

The annual trimmed mean, which serves as a measure of underlying inflation, remained at 3.6 per cent for the third consecutive month.

The Australian Broadcasting Corporation reported that economists generally expected CPI growth to reach 4.1 per cent in August, with the trimmed mean remaining at 3.6 per cent.

According to the ABS, housing costs were the primary driver of annual inflation up to August, rising by 5.7 per cent, while transport prices increased by 5.6 per cent due to rising fuel prices.

The data was released a day after Australia’s central bank, the Reserve Bank of Australia (RBA), raised the cash rate target from 4.35 per cent to 4.60 per cent on Tuesday (29/9). This marks the highest level since November 2011, driven by inflation caused by the artificial intelligence (AI) boom and conflicts in the Middle East.