RBA to Decide Interest Rates Before Inflation Report

Australia's inflation rate remains above the Reserve Bank of Australia's (RBA) target range, standing at 3.5% in July. This marks a slight decrease from June's 3.8%, but the trimmed-mean measure held steady at 3.6%. The RBA will make its next interest-rate decision on September 29, before the release of August consumer prices on September 30.

The latest inflation figures show that housing was the largest contributor to annual inflation, rising 5.0%, while food and non-alcoholic beverages increased by 3.2%. Fuel prices jumped 7.5% in July due to a rise in world oil prices and the unwinding of federal fuel-excise relief.

The RBA has already raised interest rates three times this year, with the cash-rate target now at 4.35%. A hold on interest rates would keep another increase in play, while a hike would show that persistent services and domestic prices outweighed the decline in the headline rate.