Reserve Bank of Australia\u2019s<\/a>\u00a0favoured underlying measure \u2013 at 3.6 per cent.<\/p>\nThe National Australia Bank (NAB) also confirmed on Thursday its cash rate forecast is under review on the back of the new inflation figures.<\/p>\n
While the headline inflation figure was a 0.3 per cent slowdown from June and the trimmed mean was steady, both remain well beyond the 2-3 per cent target, and both were higher than market forecasts of 3.2-3.3 and 3.5 per cent respectively.<\/p>\n
Prior to this, all big four banks were predicting the RBA\u2019s next move would be a rate cut, albeit not until 2027.<\/p>\n
But now economists believe the central bank has little choice but to raise the cash rate from 4.35 per cent when it holds a board meeting during the first week of November.<\/p>\n
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CBA now also forecasts a rate hike in November.\u00a0Bloomberg via Getty Images<\/p>\n
Impact felt by mortgage holders<\/p>\n
A 0.25 percentage point rate hike in November would add about $91 to the monthly repayment on a $600,000 loan with 25 years remaining, according to comparison site Canstar.<\/p>\n
Taking into account the four rises during 2026, the total increase to monthly repayments would be $363.<\/p>\n
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Mortgage holders can expect no relief due to stubborn inflation, say economists.\u00a0Getty<\/p>\n
Canstar data insights director, Sally Tindall, says the ANZ and CBA u-turns are a reminder of how quickly forecast\u2019s change. The stubborn inflation figures will force the RBA board to debate the merits of a rates hike when it meets in five weeks.<\/p>\n
\u201cFor those with a $1 million mortgage, the impact is significant, adding an extra $152 per month to repayments. <\/p>\n
\u201cThat\u2019s an extra $605 these borrowers would have to stump up every single month compared to what they were paying at the start of the year.\u201d<\/p>\n
The RBA will hand down its next interest rates decision on September 29.<\/p>\n
Building, takeaway food, fuel drive prices<\/p>\n
The Australian Bureau of Statistics (ABS) on Wednesday identified three key drivers of inflation.<\/p>\n
Housing costs were a chief culprit.<\/p>\n
\u201cHousing rose by 5.0 per cent in the 12 months to July due to rising costs for New dwellings,\u201d ABS head of price statistics Rachael McCririck said.<\/p>\n
![\"New](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/08\/a46e9ff9fd8fd8e240659ce78a64b1820f38b57e2c3e4bfa5f111f2a18b6ab6f.jpeg\")
<\/p>\n
Rising construction costs are helping to keep inflation above the RBA\u2019s target.\u00a0iStock<\/p>\n
\u201cNew dwellings prices rose 5.7 per cent in the 12 months to July as builders passed on higher costs for materials and labour.\u201d<\/p>\n
It also appears consumers have been enjoying dining out recently.<\/p>\n
Annual food inflation is at 3.2 per cent for the 12 months to July, driven primarily by meals out and takeaway \u2013 that measure was up 4.5 per cent.<\/p>\n
And, in news that will come as no surprise to anyone who\u2019s had to fill up the car in the last two months, petrol is also getting more expensive.<\/p>\n
\u201cOn a monthly basis, Automotive fuel prices rose 7.5 per cent in July after falling for three months in a row,\u201d McCririck said.<\/p>\n
\u201cThis was driven by higher world oil prices and the partial unwinding of the federal government\u2019s fuel excise relief measures in July.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Two of Australia\u2019s big four banks on Thursday reversed their forecast for interest rates, predicting they will rise…\n","protected":false},"author":2,"featured_media":597102,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-597101","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/597101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=597101"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/597101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/597102"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=597101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=597101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=597101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"ANZ](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/08\/8d81c4427934a94def0be5b4eb38ced4de65d2cd.jpeg\")
<\/p>\n