Shock inflation rise puts dent in rate cut hopes
Newly released inflation data has shocked market expectations and put hopes of another interest rate cut next month in serious doubt.
Housing and food prices continue to fuel inflation in Australia. (Image source: Ilija Erceg/Shutterstock.com)
Inflation data released Wednesday (27 August) has put a major dent in interest rate cut expectations.
The monthly consumer price index leapt from 1.9 per cent in June to 2.8 per cent in July, belittling market predictions of a 2.3 per cent figure.
The data from the Australian Bureau of Statistics will likely be the ammunition needed for the Reserve Bank of Australia (RBA) to keep the official cash rate on hold when it next meets on 30 September…
