Australia's inflation tops one-year high in August

Group 1: Inflation Data - Australian consumer prices rose 3% in August year-on-year, up from 2.8% in July, exceeding median forecasts of 2.9% [2] - The trimmed mean measure of core inflation was 2.6% in August, down from 2.7% in July, while a measure excluding volatile items increased to 3.4% from 3.2% [2] Group 2: Market Reactions - Investors are now betting that the Reserve Bank of Australia (RBA) will not change interest rates next week, with the likelihood of a rate cut in November dropping to 50% from nearly 70% [1] - Major banks including Barrenjoey, Deutsche Bank, and National Australia Bank have abandoned their calls for a rate cut in November due to the upside surprise in inflation data [3] Group 3: Economic Outlook - The RBA has indicated that the economy is in a good position, with inflation expected to return to the target band of 2% to 3% and the labor market nearing full employment [5] - The central bank forecasts headline inflation to rise to 3.1% by mid-next year, while core inflation is expected to remain around 2.6% [6] Group 4: Sector-Specific Insights - Price growth in the services sector, particularly in restaurant meals and takeaway food, has accelerated, indicating potential inflationary pressures [7] - New dwelling prices increased by 0.7% year-on-year to August, suggesting a stall in the disinflationary trend in the housing sector [7]