A higher-than-expected inflation number has dramatically raised the risk that the Reserve Bank will be forced to hike interest rates again as early as August.
A higher-than-expected inflation number has dramatically raised the risk the Reserve Bank will be forced to hike interest rates again to get consumer prices under control.
Betashares chief economist David Bassanese agreed, and said the result "can only be described as a shocker". "That's due in large part to the stickiness of service sector inflation, which simply isn't coming down as quickly as the RBA or the market expected." However, it appears much of the May jump was due to base effects — that is, prices were up on an annual basis, not because they rose particularly strongly during May.
CPI Consumer Price Index ABS Australian Bureau Of Statistics Reserve Bank RBA Interest Rates
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