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Inflation lifts to 4.0% in August, keeping pressure on the RBA for another rate rise

By Isaac Gross, Lecturer in Economics, Monash University

Australia’s headline inflation rate climbed to an annual rate of 4% in August, up from 3.5%, giving the Reserve Bank some vindication for its decision to raise interest rates a day before the figures were released.

But beneath that headline, the case for another hike was less clear. Underlying inflation, which strips out volatile items, remained steady at 3.6% over the year.

The Australian Bureau of Statistics

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