Australian Inflation Hits 4%, Interest Rates Soar

Australia's annual headline inflation rate accelerated to 4% in August, up from 3.5% in July, according to new statistical data released by the government.

The Reserve Bank of Australia considers a different measure of inflation, called the trimmed mean, which remained steady at 3.6% for the third consecutive month.

This news comes on the heels of the bank's decision to raise interest rates for the fourth time this year by 0.25 percentage points, from 4.35% to 4.6%, in an effort to combat inflation and prevent it from becoming entrenched in the economy.

The cash rate target has reached its highest level in 15 years following this decision.