Inflation rise puts RBA interest rate cuts in doubt

A rise in Inflation could place further pressure on the Reserve Bank to delay or even abandon planned interest rate cuts. Headline inflation increased to 3 per cent in August, up from 2.8 per cent. According to the Australian Bureau of Statistics, housing, food, and non-alcoholic beverages contributed to the increase in the rate of inflation. Some economists warn that the RBA may delay further interest rate cuts.