Banking News – Australia’s annual inflation rate rose to 4 percent in August. According to official data released on Wednesday, the Consumer Price Index, which was 3.5 percent in July, rose to 4 percent in August.

According to the Australian Bureau of Statistics, the annual average rate measuring the underlying state of inflation has remained stable at 3.6 percent for the third consecutive month. Economists had estimated inflation to reach 4.1 percent in August and expected the underlying inflation rate to remain around 3.6 percent.

According to the Bureau of Statistics, housing-related prices increased by 5.7 percent in the year to August, becoming the largest contributor to annual inflation. Similarly, transportation-related prices increased by 5.6 percent due to rising fuel prices.

This data was released the day after Australia’s central bank raised the cash interest rate from 4.35 percent to 4.60 percent on Tuesday. This rate is the highest since November 2011. The central bank cited the rapid expansion of artificial intelligence and inflationary pressures arising from the ongoing conflict in the Middle East as reasons for the interest rate hike.