A measure excluding volatile items and holiday travel climbed to 3.4% from 3.2%.
The prospect of an RBA rate cut next week, at the September 29-30 meeting diminished on the hot headline. Governor Michele Bullock said the economy was in solid shape, with inflation set to move back into the 2–3% target range and the labour market close to full employment.
The bank expects headline inflation, which was 2.1% last quarter, to rise to 3.1% next year as energy rebates expire, while core inflation should hold near 2.6%
Australian consumer prices rose in August at fastest annual pace in a year – RBA won’t cut
