Inflation Rises to 4%, Just a Day After Cash Rate Hike

Homeowners in Australia have been dealt another blow as inflation rose to 4% in August, up from 3.5% in July.

The increase comes just a day after the Reserve Bank raised the cash rate to 4.6%, the highest it has been in 15 years.

Reserve Bank governor Michele Bullock acknowledged that the timing of the inflation data release was unfortunate, but said there was little they could do about changing the date of their meetings with the Australian Bureau of Statistics (ABS).

Bullock stated, 'We set our monetary board meetings about 18 months to two years in advance,' adding that 'when the ABS change their date, it's not ideal, but there wasn't much we could do about that.'

The Reserve Bank has made clear its intention to continue raising the cash rate until inflation returns to a target range of between 2 and 3%.