Australia's Inflation Rate Risks Spiking Higher

Australia's consumer prices rose more than expected in July, driven by higher fuel and travel costs. The Australian Bureau of Statistics reported that the monthly consumer price index (CPI) jumped 1.0% from June, exceeding forecasts of a 0.8% rise.

The annual pace slowed to 3.5% from 3.8%, but this was due in part to an outsized increase from last year dropping out of the calculation.

Core inflation, measured by the trimmed mean, increased 0.5% in July, the biggest rise in a year and above forecasts for 0.3%. This left the annual pace at 3.6%.

The Reserve Bank of Australia (RBA) had forecast core inflation to slow to 3.3% by the end of the year.