Inflation Surge Puts Homeowners Under Further Pressure

Homeowners have been dealt another blow in the form of inflation, which rose to 4% in August, up from 3.5% in July, according to figures released by the Australian Bureau of Statistics on September 30.

This significant jump comes just a day after the Reserve Bank raised the cash rate to 4.6%, its highest level in 15 years, without having access to August's consumer price index.

Reserve Bank governor Michele Bullock acknowledged that the timing was unfortunate, but noted that the bank sets its monetary board meetings 18 months to two years in advance and couldn't change the date of the ABS release.

The Reserve Bank has made it clear that it will continue to raise the cash rate as long as inflation remains above the target of between 2 and 3%, with Westpac predicting another rise in November.

Housing remained one of the largest drivers of inflation, rising 5.7% in the past 12 months, while transport costs rose 5.6% due to higher fuel prices.