SYDNEY, Aug 26 (Reuters) – Australian consumer prices rose by more than expected in July as fuel and travel costs jumped, data showed on Wednesday, while core inflation also topped forecasts and added to the risk of another hike in interest rates.
Data from the Australian Bureau of Statistics showed its monthly consumer price index (CPI) rose 1.0% in July from June, above forecasts of a 0.8% rise. The annual pace slowed to 3.5% from 3.8%, as an outsized increase from last year dropped out of the calculation. Median forecasts had been for an annual rise of 3.3%.
The trimmed mean measure of core inflation increased by 0.5% in the month, well above forecasts of 0.3%, leaving the annual pace at 3.6%. The Reserve Bank of Australia has hiked rates three times this year in an effort to get core inflation back into its target band of 2% to 3%.
(Reporting by Wayne Cole; Editing by Jacqueline Wong)
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