Australian Inflation Surges, Fueling Rate Hike Fears

Australia's inflation rate rose more than expected in July, fueling concerns about another interest rate hike from the Reserve Bank of Australia. The country's monthly consumer price index (CPI) jumped 1% from June, exceeding forecasts of a 0.8% rise.

The increase was driven by higher fuel prices, which surged 7.5% in July after falling for three months. Core inflation also accelerated, with the trimmed mean measure rising 0.5% in the month, its biggest increase in a year.

This news has sparked concerns about another rate hike from the RBA, with market participants now pricing in a 36% chance of a fourth hike next month and a 94% chance by February next year.