Rising fuel prices are keeping Australian inflation elevated, reinforcing the
Reserve Bank of Australia's recent hawkish signal. The Australian Bureau of
Statistics reported the CPI trimmed mean rose 3.6% YoY, in line with
expectations; core inflation was 0.2% MoM, below a 0.3% forecast. Persistent
inflationary pressure prompted the RBA's fourth rate hike this year on Tuesday.
Money markets assign roughly a 40% probability of another RBA hike in November.
The RBA's 2–3% target midpoint has not been achieved for nearly five years.
