US inflation for July 2022 hit 8.5 per cent, however this was less severe than June's 9.1 per cent level - the steepest since 1981. The high inflation rate prompted US Federal Reserve Chair Jerome Powell to signal that more interest rate rises are on the way. 

Australian inflation is also rising and doubled in the past 12 months. The Australian Consumer Price Index (CPI) was 3 per cent for the September 2021 quarter and rose to 6.1 per cent in the June 2022 quarter. While Australian inflation data is calculated quarterly, US figures are assessed on a monthly basis. The Australian Reserve Bank is expected to follow the US Fed's lead and implement its fourth consecutive 50 basis point increase in the official cash rate in early September.

The cost of living is increasing in Australia and the United States

CPI, Australia and the United States
Source: USSC