The annual CPI rate rise to 5.1% was higher than expectations and reflects higher fuel and food costs, sparking fears of an interest rate rise
Australia faces the prospect of a pre-election rate rise by the Reserve Bank after underlying inflation pace soared to its highest in 13 years while the broader consumer price measure increased at the quickest pace since the GST was introduced in 2000.
The last time the RBA raised interest rates during a federal election was in 2007 when then prime minister John Howard lost the subsequent poll to Kevin Rudd. Food prices rose 2.8%, with vegetables alone up 6.6%, fruit up 4.9%, and beef up 7.6% in the March quarter. The pace of food price increases, including 4.3% year-on-year, is the most since 2011, Rabobank said.
“This reflected the broad-based nature of price rises, as the impacts of supply disruptions, rising shipping costs and other global and domestic inflationary factors flowed through the economy,” she said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Difficult balancing act’: Economists say case for pre-election rate rise strengtheningTop economists say there is enough data to justify lifting interest rates before the May 21 election, despite the political heat the RBA would take on as a result.
Read more »
Inflation jump to test RBA and election campaignInflation is poised to surge to a 14-year high of about 4.5 per cent this week and the rising price pressures will reignite election debate about the cost of living.
Read more »
Consumer inflation tipped to hit 4.5% in March as Australian cost of living soarsPetrol, produce and mortgage costs are rising powered by pandemic shortages, flood damage and the war in Ukraine
Read more »
Australia records largest jump in inflation since introduction of GSTThe Consumer Price Index jumped by 2.1 per cent in the first quarter of this year, taking annual inflation to 5.1 per cent – the highest level since the introduction of the GST. AusPol 9News What it means for you:
Read more »
Australia records largest jump in inflation since introduction of GSTThe Consumer Price Index jumped by 2.1 per cent in the first quarter of this year, taking annual inflation to 5.1 per cent – the highest level since the introduction of the GST. 9News What it means for you:
Read more »
Price surge hits consumers at fastest rate since 2000Consumer prices jumped by 2.1 per cent through the first three months of the year, taking annual inflation to its highest level in more than 20 years | swrighteconomy
Read more »