Australia reports lower-than-expected first-quarter inflation — but price growth hits 2-year high
Australia's inflation rate reached 4.09% in the first quarter, the highest in over two years, although it was slightly below economists' expectations. This increase raises the likelihood of an interest rate hike by the Reserve Bank of Australia, which recently raised rates to 4.1%. The central bank anticipates inflation will remain above its target for an extended period due to various economic pressures.
- ▪Australia's inflation rate hit 4.09% in the first quarter, the highest in over two years.
- ▪The inflation reading was lower than the expected 4.2%, but still raises interest rate hike prospects.
- ▪The Reserve Bank of Australia raised rates to 4.1% in March, the highest level since April 2025.
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Australia's inflation rate soared to 4.09% in the first quarter from a year earlier, marking its highest level in more than two years.The reading was lower than the 4.2% expected by economists polled by Reuters, but it still raised the prospects of an interest rate hike by the Reserve Bank of Australia. Prices increased 1.4% from the previous quarter. In March, inflation climbed to 4.6%, driven mainly by higher costs for housing, transport and food.The 4.6% reading was the highest since Australia began publishing monthly consumer price index data in 2025.The data also comes ahead of the Reserve Bank of Australia's policy meeting next week. The central bank raised rates to 4.1% at its March meeting, the highest level since April 2025.
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