Stubborn inflation keeps November hike in focus after latest RBA increase

Tuesday’s record-breaking cash rate hike may not be enough to weather the nation’s economy against high inflation, with new data strengthening the chance of another hike in the next few weeks.The Reserve Bank confirmed the year's fourth increase to the cash rate on Tuesday, bringing it to a near 15-year high of 4.6%.That increase could well be followed by another rate hike in just five weeks, with new inflation data painting a concerning picture for the longevity of Australia’s battle for economic stability.Figures published on Wednesday by the Australian Bureau of Statistics show underlying inflation remained at 3.6% in the 12 months to August, marking the third month in a row without any cooling.While inflation is not expected to be back in the Reserve Bank’s 2-3% target range for at least another 12 months, it was hoped the August data would begin to show Australia had passed over the peak.With domestic pressures mounting and the war in the Middle East continuing, the bank’s forecasts are now expected to take a dramatic turn from its August expectations for an extended period with the cash rate on hold.The RBA has raised the cash rate four times in eight months. Picture: Hu Jing...