Inflation has once again become the dominant theme for investors, consumers and policymakers as attention turns to the Reserve Bank of Australia's September meeting. While the Reserve Bank left the cash rate unchanged at 4.35% p.a. during its August meeting, recent inflation data has increased speculation that further rate increases may be required in coming months.

Australian share markets delivered a modest gain during August, with the S&P/ASX 200 Index rising 1.1% over the month to close at 9,076 points.

Global investment markets delivered mixed results over the month of July, while Australian shares continued their positive momentum. The S&P/ASX 200 Index rose 2.3% to close at 8,976.8 points. The Australian dollar also strengthened during the month, rising 1.6% against the US dollar to approximately USD 0.70.

Overseas markets delivered mixed results. The US S&P 500 was broadly unchanged, falling 0.1%, while the UK FTSE 100 rose 3.5%. Japan's Nikkei Index declined 8.1%, while Hong Kong's Hang Seng Index recorded a strong gain of 13.1%.

June was a relatively subdued month for investment markets. The S&P/ASX 200 Index rose 0.5% to close at 8,778.70 points, while the Australian dollar weakened to around USD 0.69. The Reserve Bank of Australia also kept the cash rate on hold at 4.35% per annum.

Global share market performance varied by region. The US S&P 500 fell by 1.1%, the UK FTSE 100 rose by 0.8%, Japan’s Nikkei gained 5.6%, and Hong Kong’s Hang Seng Index declined by 9.1%.