Australian Inflation data points to RBA rate hike

Good morning. Traders are betting on a rate hike next week after key data yesterday showed inflation is accelerating and in breach of the Reserve Bank’s target. It’s not good news for those with a mortgage, or for the RBA as it would be an awkward about-face less than six months after it last reduced borrowing costs. Meanwhile, China is closely watching how the Albanese government handles the status of the Port of Darwin . - Paul-Alain Hunt, Metals and Mining Reporter

Australia’s core inflation remained elevated last quarter, suggesting price pressures aren’t abating at the desired pace and providing the Reserve Bank with further evidence that interest rates may need to move higher. The data has led traders to boost bets on a rate hike next week and some economists to predict the RBA will tighten policy to ensure inflation returns to the target.