Thursday 29 September 2022 02:50 AM Australian inflation in July and August surges at the fastest pace since 1990 trends now Borrowers WILL cop another big interest rate rise next month as inflation surges at the fastest pace since 1990 Inflation surged by 7 per cent in year to July and 6.8 per cent annually in August This was the highest annual headline inflation reading since December 1990 By Stephen Johnson, Economics Reporter For Daily Mail Australia Published: 02:42 BST, 29 September 2022 | Updated: 02:49 BST, 29 September 2022 Viewcomments Australian borrowers are set to face another big interest rate increase with inflation surging at the fastest pace since 1990. New Australian Bureau of Statistics data showed the consumer price index surging by 7 per cent in the year to July and by 6.8 per cent annually in August. This was the fastest pace of headline inflation since December 1990 during the early stages of the first Gulf War. Inflation is well above the Reserve Bank of Australia's 2 to 3 per cent target, which means borrowers could be dealt with another 0.5 percentage point rate rise in October. Borrowers since May have already copped five straight monthly interest rate rises, taking the cash rate to a seven-year high of 2.35 per cent. Another 50 basis point increase next month would take the cash rate to a nine-year high of 2.85 per cent. Australian borrowers are set to face another big interest rate increase with inflation surging at the fastest pace since 1990 (pictured is a Melbourne auction) Share or comment on this article: All rights reserved for this news site (dailymail) and under his responsibility