Australia's headline inflation hits 4% in August, matching consensus

Australia's headline consumer price index climbed 4% in the year to August, matching the consensus estimate of 4.0% and rising from a 3.5% pace.

• Surging fuel prices were a primary driver.
• The forecast had been 4.0%, following a 3.5% prior reading.

On a monthly basis, the CPI advanced 0.4% in August.

• The increase matched the 0.4% market expectation and marked a slowdown from the 1.0% gain in the prior month.

The trimmed mean CPI, an alternative measure that smooths outlier moves, showed a 3.6% annual increase in August.

• This matched the 3.6% forecast and was flat against the previous 3.6% reading.

The month-on-month trimmed mean CPI rose 0.2%.

• The result came in below the 0.3% consensus and decelerated sharply from the prior 0.5% move.

Background:

• A preview of the data had flagged the headline rate rising to 4.0% following the central bank's policy tightening.