Aug 26, 2026 – 4.48pmA stronger than expected inflation print for July has flipped the script on interest rates in Australia with traders and economists now starting to weigh the prospect of at least one more increase this year.Markets were swift to react to the data on Wednesday with the Australian dollar and bond yields spiking while the sharemarket was sold off after headline inflation come in at 3.5 per cent for the year to July, well above expectations of 3.3 per cent.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Markets flip the script on rates after hot inflation print
Stronger-than-expected July inflation data has prompted traders to price in a more than 80 per cent chance of a fourth rate increase this year.
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