Australian Shares Headed for Worst Month Since March Amid Inflation Concerns

Australian shares are on track for their worst monthly decline in six months as investors remain cautious ahead of domestic inflation data due later this week.

The S&P/ASX 200 index rose a mere 0.1% to 8,718.1 points on Wednesday, but the benchmark is expected to post its worst month since March.

Rising oil prices and higher bond yields have reignited concerns that inflation may persist at elevated levels, with consumer price data for August forecast to accelerate to 4.1% from 3.5%, partly due to a jump in fuel costs.

Core inflation is expected to remain steady at 3.6%, still above the Reserve Bank of Australia's target range of 2-3%. The central bank has already raised interest rates to a 15-year high, warning of further hikes if needed to curb stubborn inflation.