Australian Inflation Jumps to 4% Amid Housing and Fuel Price Increases

The Australian Bureau of Statistics (ABS) released new data showing that headline inflation jumped to 4% in August, up from 3.5% in July. This increase is largely due to rising housing costs and higher automotive fuel prices.

New dwelling prices rose 5.4% in the 12 months to August as builders passed on increased costs for materials and labor, according to Rachael McCririck, ABS head of price statistics.

The Reserve Bank of Australia (RBA) lifted interest rates by 0.25 percentage points on Tuesday, taking the cash rate target to 4.6%, its highest level in 15 years.