Australian Consumer Prices Surprise to Upside, Raising Hike Odds
Australia's consumer prices rose by more than expected in July, sparking a potential further interest rate hike from the Reserve Bank of Australia (RBA).
The monthly Consumer Price Index rose 1.0% from June, above forecasts of a 0.8% increase, driven by jumps in fuel and travel costs.
The annual headline rate eased to 3.5% from June's 3.8%, but still came in above the 3.2-3.3% range flagged by major banks ahead of the release.
Core inflation, measured by the trimmed mean, rose 0.5% in the month, well above the 0.3% forecast, and left the annual trimmed mean rate at 3.6%, unchanged from June and above the 3.5% consensus among major bank economists.
The breadth of the increase suggests underlying demand pressure across a wider range of goods and services, rather than a single cost-driven distortion.