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Faster-Than-Expected Australia Inflation Revives Chances Of RBA Rate Hike

Faster-than-expected inflation is likely to force the Reserve Bank of Australia to deliver a 25 basis point rate hike in November, which could be the last in the current tightening cycle.

Consumer prices posted a sequential growth of 1.2 percent, faster than the 0.8 percent increase in the second quarter, the Australian Bureau of Statistics reported Wednesday. Economists had forecast an annual rate of 1.1 percent.

The most significant contributors to the sequential increase were automotive fuel, rents, new dwellings purchased by owner occupiers and electricity.

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by Renju Jaya

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