Australia’s headline inflation rate climbed to an annual rate of 4% in August, up from 3.5%, giving the Reserve Bank some vindication for its decision to raise interest rates a day before the figures were released.

But beneath that headline, the case for another hike was less clear. Underlying inflation, which strips out volatile items, remained steady at 3.6% over the year.

The Australian Bureau of Statistics said higher petrol prices helped drive the increase.

But annual price pressures were hardly confined to the bowser: housing costs rose 5.7% due to rising construction costs, education was up 4.7%, and food and non-alcoholic beverages rose 3% over the year to August.

The RBA had to make an early call

When trying to save a penalty kick in soccer, a goalkeeper cannot simply wait to see exactly where the ball is going. By then it will be too late. They generally have to commit to diving left or right, before the kicker has made contact with the ball. Choose correctly and they can be a hero. Choose wrongly and they can be left sprawled on the grass as the ball sails into the opposite corner.

The RBA found itself in much the same position on Tuesday. Its interest rate decision........

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