Australian inflation in July and August surges at the fastest pace since 1990

Borrowers will face another big interest rate hike next month as inflation rises at the fastest pace since 1990.

  • Inflation rose 7 percent annually through July and 6.8 percent annually in August.
  • This was the highest annual headline inflation reading since December 1990

<!–

<!–

<!–<!–

<!–

<!–

<!–

Australian borrowers will face another big interest rate hike with inflation rising at the fastest pace since 1990.

New data from the Australian Bureau of Statistics showed the consumer price index rose 7 percent in the year to July and 6.8 percent year on year in August.

This was the fastest rate of headline inflation since December 1990 during the early stages of the first Gulf War.

Inflation is well above the Reserve Bank of Australia’s 2%-3% target, meaning borrowers could face another 0.5 percentage point rate hike in October.

Borrowers since May have already faced five consecutive monthly interest rate increases, taking the cash rate to a seven-year high of 2.35 percent.

Another 50 basis point hike next month would take the cash rate to a nine-year high of 2.85 percent.

Australian borrowers will face another big interest rate hike with inflation rising at the fastest pace since 1990 (Melbourne auction pictured)

Australian borrowers will face another big interest rate hike with inflation rising at the fastest pace since 1990 (Melbourne auction pictured)

.