Rate Hike Fears Reignite as Inflation Surges
The Australian property market is facing another layer of uncertainty due to fresh inflation data. The Consumer Price Index (CPI) showed headline inflation jumped to 4% in August, up from 3.5% in July.
Housing was the largest contributor to annual inflation, rising by 5.7%, with new dwelling prices increasing by 5.4%. Transport costs also rose significantly, driven by higher global oil prices and the unwinding of federal fuel excise relief.
The Reserve Bank of Australia (RBA) raised interest rates for the fourth time in a day, lifting the cash rate to 4.6%, its highest level since 2011.
Experts predict another potential rate hike at the November meeting of the RBA, which would take the official cash rate to 4.85%, its highest level since the global financial crisis in 2008.