AUSTRALIAN DOLLAR RISE, AUSTRALIAN CPI OVER-EXPECTED, CORE INFLATION UNEXPECTEDLY RISING

THE INCREASE IN THE AUSTRALIAN CONSUMER PRICE INDEX (CPI) IN JULY EXCEEDED EXPECTATIONS AND THE UNEXPECTED RISE IN CORE INFLATION REINFORCED THE CASE FOR FURTHER INTEREST RATE HIKES BY THE RESERVE BANK OF AUSTRALIA (RBA). ACCORDING TO THE AUSTRALIAN BUREAU OF STATISTICS, THE CPI INCREASED BY 1.0 PER CENT IN JULY OVER JUNE AND BY 0.8 PER CENT MORE THAN EXPECTED. THE CUT-OFF OF CORE INFLATION AVERAGED 0.5 PER CENT PER MONTH, WHICH IS ALSO HIGHER THAN THE 0.3 PER CENT EXPECTED, WITH AN ANNUAL RATE OF 3.6 PER CENT. THE RELEASE OF THIS DATA ENABLED THE MARKET TO ADJUST RAPIDLY THE EXPECTATIONS OF A HIGHER INTEREST RATE FOR RBA AT THE SEPTEMBER MEETING, WITH THE SUBSEQUENT RISE OF THE AUSTRALIAN DOLLAR。