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Australia inflation jumps to 4% amid higher fuel costs fears
The rise to 4% in the year to August came after a 3.5% reading in July, renewing debate over whether further Reserve Bank rate hikes are needed before Christmas.
Australia’s inflation rate rose to 4% in the year to August, up from 3.5% the prior period, Treasurer Jim Chalmers said, pointing to higher fuel costs.
Chalmers attributed the acceleration to spillovers from higher global oil prices into Australian fuel prices, linking the pressure to the ongoing US Israel war involving Iran, according to the Guardian Economics.
The treasurer used the new inflation figures to defend Labor’s economic management amid renewed fears that the Reserve Bank may need to lift interest rates again before Christmas.
The report also notes that Chalmers faced criticism after insisting that government spending was not responsible for the inflation increase, with opponents accusing him of dismissing the impact of policy through the fuel cost explanation.