Inflation jumps to 4.6% in Australia as Iran war fuel shock begins to bite
Inflation in Australia has surged to 4.6%, up from 3.6% in December, raising expectations for an interest rate hike by the Reserve Bank. The increase is attributed to a fuel shock linked to the ongoing conflict in Iran, which is expected to impact the economy further. Despite the challenges, the Treasurer reassured that the economy has solid foundations to navigate this period of uncertainty.
- ▪Annual inflation in Australia rose to 4.6% in March, prompting predictions of an interest rate hike by the Reserve Bank.
- ▪The increase in inflation is linked to a fuel crisis stemming from the Iran war, with fuel costs jumping by 33% in the month.
- ▪Economists warn that inflation could reach 5.5% by mid-year, affecting sectors such as construction and food services.
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Latest figures from the Australian Bureau of Statistics showed annual inflation climbed to 4.6%, from 3.6% in December, prompting predictions the RBA will raise interest rates next week. Photograph: George Chan/EPAView image in fullscreenLatest figures from the Australian Bureau of Statistics showed annual inflation climbed to 4.6%, from 3.6% in December, prompting predictions the RBA will raise interest rates next week. Photograph: George Chan/EPAAustralian economyInflation jumps to 4.6% in Australia as Iran war fuel shock begins to bite Financial markets are betting the Reserve Bank will hike interest rates for a third straight meeting next Tuesday Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast Patrick Commins Economics…
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