Australia Inflation Rate Hits 4% in August, Below Forecasts

Australia's consumer inflation rate rose to 4% in August, below economists' expectations of 4.1%, despite a recent interest rate hike by the Reserve Bank.

The annual inflation rate, as measured by the Australian Bureau of Statistics (ABS), accelerated from 3.5% in July but was still lower than forecast. On a monthly basis, prices rose 0.4% in original terms and 0.7% on a seasonally adjusted basis.

The trimmed mean, which strips out large price movements and is closely watched by the RBA, remained at 3.6% year-on-year, unchanged from July. However, underlying inflation pressures showed no further strengthening, according to Capital Economics.