Fuel drives inflation rebound
As expected by markets, the monthly inflation indicator came in at 5.2 per cent for the year to August.
This was an increase from the very sharp drop to 4.9 per cent last month, but below the 5.4 per cent recorded in June.
The increase was mainly driven by rising fuel prices, driven more so by global forces, and rents, which are being pushed higher by record immigration and tight lending conditions.
Excluding volatile items - fuel, fruit and veg, and holiday travel - the indicator rose 5.5 per cent in August, down from 5.9 per cent in July.
Since this was in line with market expectations, the Aussie dollar and bond markets were largely unchanged.
Things are gradually moving in the right direction, but still a drop in fuel prices would be most welcome!
