Australian unemployment climbed to 4.6% in August, surpassing economists’ expectation of 4.5%, according to the Australian Bureau of Statistics. The economy added 39,500 jobs, exceeding the predicted 20,000 increase, while the participation rate rose to 67.1% from 66.9%. Sean Crick, ABS head of labor statistics, noted a higher proportion of people previously not in the labor force moved into unemployment.

The report is the final major economic release before the Reserve Bank of Australia’s Sept. 28-29 meeting. RBA Governor Michele Bullock previously stated unemployment edging toward 5% would help alleviate inflationary pressures. The RBA forecasts the jobless rate will peak at 4.8% by mid-2028.

Andrew Lilley, chief rates strategist at Barrenjoey Markets in Sydney, said the data suggests the labor market is loosening faster than expected, and this may be the last rate hike. If the RBA raises rates next week, the cash rate would reach 4.6%, the highest since late 2011. The central bank remains focused on tackling inflation, which has stayed above its 2-3% target band for nearly five years.