Australia’s annual inflation accelerated to 2.8% in July, the highest rate in a year and well above economists’ 2.3% consensus, according to data from the Australian Bureau of Statistics. The rise compares with a 1.9% increase in June and was accompanied by a 0.9% seasonally adjusted monthly gain. Underlying price pressures also strengthened. The trimmed mean gauge climbed to 2.7% year on year from 2.1% in June, edging toward the upper end of the Reserve Bank of Australia’s 2%–3% target band. The ABS said housing costs rose 3.6% from a year earlier, while food and non-alcoholic beverage prices increased 3.0%. Electricity bills jumped 13.1% as state and federal energy rebates expired, and alcohol and tobacco prices were 6.5% higher. Coffee, tea and cocoa prices surged 14.4%, reflecting global supply constraints. The pickup in inflation complicates the RBA’s policy outlook after three rate cuts this year. Interest-rate futures now assign a 78% probability that the central bank will keep the cash rate unchanged at its September meeting, up from 74% before the data release, and suggest expectations of another cut later in the year are fading.