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MNI BRIEF: RBA 50bps Hike Odds Firm After August CPI Hits 6.8%

MNI (PERTH)
MNI (Perth)

A surge in inflation to a three decade high has firmed expectations the Reserve Bank of Australia will raise its cash rate 50bps at its Oct 4 meeting.

Monthly Consumer Price Index indicator data released by the Australian Bureau of Statistics showed headline inflation rose to 7% y/y in July - the fastest pace since 1990 - before retreating to 6.8% in August. The fall in August was due to lower fuel prices, but the reinstatement of the full fuel excise from Sep 29 will add AUD25.3 cents per litre in taxes according to the Australian Competition and Consumer Commission.

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A surge in inflation to a three decade high has firmed expectations the Reserve Bank of Australia will raise its cash rate 50bps at its Oct 4 meeting.

Monthly Consumer Price Index indicator data released by the Australian Bureau of Statistics showed headline inflation rose to 7% y/y in July - the fastest pace since 1990 - before retreating to 6.8% in August. The fall in August was due to lower fuel prices, but the reinstatement of the full fuel excise from Sep 29 will add AUD25.3 cents per litre in taxes according to the Australian Competition and Consumer Commission.

Keep reading...Show less