Australia monthly CPI rises 3.0% y/y in Aug, core cools

SYDNEY (Reuters) -Australian consumer prices rose at the fastest annual pace in a year in August, but a key measure of core inflation eased back and kept the door open to a further cut in interest rates.

Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose 3.0% in August compared to a year earlier, up from 2.8% in July and just above median forecasts of 2.9%.

The key trimmed mean measure of core inflation ran at an annual 2.6% in August, down from 2.7% in July. A measure excluding volatile items and holiday travel climbed to 3.4%, from 3.2%.

(Reporting by Wayne ColeEditing by Shri Navaratnam)