Investors warn of a rate hike in August after inflation rises

Investors say there's now a one-in-three chance of an interest rate rise in August after inflation rose to its highest level this year.

Investors warn of a rate hike in August after inflation rises

The annual CPI accelerated to 4.0 per cent last month from 3.6 per cent in April.

The last time it was higher was in November 2023.

There are calls for the government to rein in spending, which some economists fear is fueling inflation.

The Coalition believes the government needs to make tougher spending cuts.