The Melbourne Institute monthly inflation gauge rose for a second consecutive month in August, driven primarily by higher transport prices after declining in May and June, the institute said in a Monday report.

The monthly cost of living also rose across all household types, including age pensioners, government transfer recipients, employees, pensioners and beneficiaries, and self-funded retirees, the report said.

Annual headline inflation, as measured by the inflation gauge, stood at 4.8%.

The gauge estimates month-to-month price movements for a wide-ranging basket of goods and services across the main capital cities of Australia.