Investing.com - Australia's inflation rate ramped up in the third quarter due to escalating fuel prices, intensifying the pressure on the Reserve Bank to consider another interest rate hike.
The primary consumer price index (CPI) increased by 1.2% in the period from July to September, a rise from the 0.8% recorded in the second quarter, according to data released by the Australian Bureau of Statistics. This surpassed economists' forecast of a 1.1% quarterly rate.
On an annual basis, the headline CPI was recorded at 5.4%, compared to 6.0% in the second quarter. Economists had anticipated the annual rate to be around 5.3%, reflecting a continued decline from the peak rate of 7.8% in the last quarter of 2022.
The Reserve Bank of Australia (RBA) has maintained its key interest rate at 4.1% for the past four months. Before releasing the latest inflation data, market speculators estimated a one-in-three chance that the central bank would increase the cash rate to 4.35% at their meeting on November 7.
In her inaugural speech as the RBA governor, Michele Bullock expressed on Tuesday in Sydney that the RBA board would not hesitate to raise the cash rate further if there is a significant upward revision to the inflation outlook.