Inflation Surge Hits Homeowners Again After Cash Rate Hike

Homeowners have suffered another blow as inflation jumped to 4% in August, up from 3.5% in July, according to figures released by the Australian Bureau of Statistics on September 30.

The Reserve Bank had raised the cash rate to 4.6%, its highest level in 15 years, just a day earlier without being able to see the latest inflation data.

Reserve Bank governor Michele Bullock acknowledged that the timing was unfortunate but said there wasn't much they could do about it.

The bank has been trying to control inflation by raising interest rates, and Bullock emphasized that the effects of these changes don't happen overnight.

Inflation is still above the target range of 2-3%, which means the Reserve Bank may continue to raise interest rates in future. Westpac predicts another rate rise in November.