Reserve Bank's Rate Rise Fails to Tame Inflation

The Reserve Bank of Australia raised its cash rate to 4.6% in a bid to control inflation, but the latest figures show prices have jumped again. The consumer price index rose 4% in August, up from 3.5% in July.

Trimmed mean inflation, which excludes the top and bottom 15% of goods and services, held steady at 3.6%. Housing remained a major driver of inflation, rising 5.7% over the past year due to increasing costs for new dwellings and electricity.

The Reserve Bank's governor Michele Bullock conceded that the timing of August's index release was unfortunate, coming just a day after the rate rise announcement.