{
  "id": 3420735,
  "title": "'Unfortunate kick in the guts' as inflation data increases RBA rate hike risk",
  "url": "https://urgent.news/2026/08/26/unfortunate-kick-in-the-guts-as-inflation-data-increases-rba-rate",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T03:50:17.000Z",
  "source": {
    "name": "ABC News AU",
    "slug": "abc-news-au",
    "url": "https://www.abc.net.au/news/2026-08-26/july-inflation-slows-heightened-risk-rba-rate-hike/107078580"
  },
  "original_language": "en",
  "account": "Inflation in Australia surged to 3.5 percent in July, marking a decline from the previous year. However, the Reserve Bank of Australia (RBA) did not witness an increase in its preferred inflation measure, which remained steady at 3.6 percent for the third consecutive month. Economists have interpreted these figures as an increase in the likelihood of an interest rate hike by the RBA, with some speculating that the September meeting might be affected. The primary driver of inflation in July was housing, which saw a 5 percent rise, followed by food and non-alcoholic beverages, and recreation and culture. The transportation sector also experienced a 1.6 percent increase. On a monthly basis, automotive fuel prices jumped 7.5 percent due to higher global oil prices and the reduction of fuel excise relief measures. The overall headline inflation rate for July was slightly higher than the predicted 3.3 percent by economists, though it was lower than the rates prior to the start of the Iran war in February. The underlying inflation, or trimmed mean figure, which the RBA prefers, stayed unchanged at 3.6 percent. However, the monthly trimmed mean figure climbed to 0.5 percent, prompting economists to suggest the figures might necessitate another interest rate hike from the RBA. If annualized, the numbers suggest that the RBA target range of 2.5 to 3 percent is far out of reach. Despite the persistent inflation, only 83 percent of polled economists anticipated the RBA to maintain interest rates during its meeting in late September. The RBA may be wary of the data, as they admitted in their latest meeting minutes that the risk to inflation is on the upside. Analysts believe there is a high probability of another rate increase before the end of the year.",
  "summary": "Inflation is continuing to cool with the annual headline rate rising to 3.5 per cent in July, but some economists say it has increased the risk of another interest rate hike by the Reserve Bank of Australia this year.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "MacroBusiness",
        "title": "Upside inflation surprise pressures RBA to hike",
        "url": "https://urgent.news/2026/08/26/upside-inflation-surprise-pressures-rba-to-hike",
        "published": "2026-08-26T01:46:34.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}