Australia reports lower-than-expected first-quarter inflation — but price rise highest in 2 years
Australia's first-quarter inflation rose to 4.09% year-on-year, the highest in over two years but slightly below the 4.2% forecast, with a 1.4% quarterly increase and a 4.6% rise in March driven by housing, transport, and food costs. The data increases the likelihood of a rate hike ahead of the Reserve Bank of Australia's upcoming policy meeting. The RBA has maintained rates at 4.1%, the highest since April 2025, as inflation remains above its 2%–3% target range. Officials acknowledged that further rate increases may be necessary, though timing remains a point of debate.
Opening excerpt (first ~120 words) tap to expand
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.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
