A gauge of Australia's inflation showed that consumer prices had risen to the top end of the Reserve Bank of Australia's 2-3% target range in August.
Reports said the TD Securities - Melbourne Institute annual inflation gauge rose to 3% from 2.8% in July. On a monthly basis, consumer prices rose 0.2%, after the 0.1% rise in the prior month.
The rise was driven by higher prices for food, alcohol & tobacco, and furniture & furnishings. These were partly offset by lower prices for meat & seafood and holiday travel.
"The inflation gauge is telling us that the mid-year return to trend economic growth, the income surge from the terms of trade boom and ongoing tight labor market are yet to translate into worrisome price pressures," said Annette Beacher, senior strategist at TD Securities.
She added that the RBA can "easily sit tight" on interest rates for the remainder of the year, as lending rates were already around historic average levels.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.