Australian inflation picks up in August as fuel prices jump

Australia's inflation picked up in August, driven by a surge in fuel prices, but the gain was in line with expectations, lessening any immediate pressure for the central bank to hike further.

Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose 5.2 per cent in the year to August, in line with forecasts and up from 4.9 per cent the previous month.

A closely watched measure of prices excluding volatile items and holiday travel eased to 5.5 per cent, from 5.8 per cent.