Australia August CPI Accelerates to 4.0% Annually, Defying RBA Rate Hikes

Australia's monthly consumer price index rose 0.4% in August from July, slightly below the 0.5% forecast, but the annual pace accelerated to 4.0% from 3.5%, data from the Australian Bureau of Statistics showed on September 30, 2026. Fuel costs surged 14.8% month-on-month, pushing inflation further above the Reserve Bank of Australia's 2%-3% target band. The trimmed mean measure of core inflation rose 0.2% in the month, holding the annual pace at 3.6% for a third straight month. New dwelling prices climbed 5.4% year-on-year and electricity jumped 13.2%. The RBA raised rates to a 15-year high of 4.6% on Tuesday, its fourth hike this year. The Australian dollar slipped 0.3% to $0.6964, while three-year government bond futures rallied 8 ticks to 95.10. Swaps pared the odds of a November move to 20% from 35%. Westpac forecasts a November hike as the base case, citing energy-related cost pressures.