Brutal news for Aussies with a mortgage: Warning interest rates will rise AGAIN in August

By AIDAN WONDRACZ, ASSISTANT NEWS EDITOR, AUSTRALIA Published: 02:48, 24 June 2026 | Updated: 02:52, 24 June 2026 Aussies with a mortgage have been dealt a brutal blow amid warnings the Reserve Bank will likely increase interest rates in light of recent inflation figures. Australian Bureau of Statistics data showed on Wednesday the consumer price index fell four per cent in the 12 months to May - down from 4.2 per cent in April. While headline inflation dipped, the trimmed mean, the measure preferred by the RBA, rose from 3.4 per cent in April to 3.6 per cent in May. The target band sits between two and three per cent.    KPMG chief economist Dr Brendan Wren told ABC this would likely put pressure on the RBA to raise interest rates in August. 'Unfortunately, I think it adds to the case for a rate hike,' he said. 'The number that's much more important, and that matters, is core inflation. 'And unfortunately, what we're seeing is core inflation rise.  Aussies with a mortgage have been dealt a brutal blow amid warnings the Reserve Bank will likely raise interest rates in light of recent inflation figures (stock image) 'That will put the Reserve Bank on notice to increase interest rates at the next meeting in August, which is pretty much what we had anticipated ourselves.' The biggest contributor to annual inflation in the year to May was housing. Food and non-alcoholic beverages and transport followed next.   'Electricity costs are 21.1 per cent higher than 12 months ago as Commonwealth and State government rebates that reduced electricity costs for households are no longer in place,' ABS head of prices statistics said. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.