Australia's consumer price index (CPI) rose 4% in the 12 months to August, up from a 3.5% increase in the year to July, the Australian Bureau of Statistics reported Wednesday.

Trimmed mean annual inflation was 3.6% in the 12 months to August, unchanged from the 12 months to July.

"Housing was the largest contributor to annual inflation in August, rising by 5.7%," said Rachael McCririck, the bureau's head of price statistics.

Annual housing inflation was driven by higher costs for new dwellings and electricity, with new dwelling prices rising 5.4% as builders passed on increased material and labor costs.

Transport was the second-largest contributor to annual inflation in August, rising 5.6%, driven by higher automotive fuel prices.

Automotive fuel prices rose nearly 15% in August, up from a 7.5% increase in July, driven by higher global oil prices and the unwinding of the remaining federal government fuel excise relief measures, McCririck said.

The CPI rose by 0.4% in seasonally adjusted terms during the month of August.