Fears grow for fourth rate hike after Australia sees higher-than-expected July inflation

Bureau of Statistics says CPI was 3.5% in July, casting doubt on Reserve Bank meeting its 2.5% inflation target without further hike

• https://www.theguardian.com/australia-news/live/2026/aug/26/national-cabinet-datacentres-cpi-inflation-data-politics-reactions-anthony-albansese-labor-angus-taylor-coalition-ntwnfb">Follow our Australia news live blog for latest updates

• Get our https://www.theguardian.com/email-newsletters?CMP=cvau_sfl">breaking news email, https://app.adjust.com/w4u7jx3">free app or https://www.theguardian.com/australia-news/series/full-story?CMP=cvau_sfl">daily news podcast

Fears are growing that the Reserve Bank will hit millions of mortgage holders with a fourth rate hike this year, after inflation eased in July but by far less than expected.

Consumer prices climbed by 3.5% through the year, down from 3.8% in the previous month, according to the Australian Bureau of Statistics.