SYDNEY Australia's inflation picked up in August, driven by a surge in fuel prices, but the gain was in line with expectations, lessening any immediate pressure for the central bank to hike further.

Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose 5.2% in the year to August, in line with forecasts and up from 4.9% the previous month.

A closely watched measure of prices excluding volatile items and holiday travel eased to 5.5%, from 5.8%.

(Reporting by Stella Qiu; Editing by Himani Sarkar)