Inflation figures Australia: Grim development ahead of interest rate meeting
Inflation STILL skyrocketing at 7 percent after 10 consecutive rate hikes in grim development as RBA considers another rate hike
- Inflation up to March by 7 percent
- Westpac predicts May 2 rate increase
Australian inflation remains high at 7% despite 10 consecutive rate hikes by the Reserve Bank – and another rate hike is expected next week.
The latest Consumer Price Index figures show that inflation is stubbornly above the Reserve Bank of Australia’s target of 2 to 3 percent.
In the year to March, it was up seven percent.
This was a moderation from the 32-year high annual rate of 7.8 percent in December.
But despite that, Westpac bank expects the RBA to raise rates again on May 2 to a new 11-year high of 3.85 percent, up a quarter of a percentage point from 3.6 percent.
Australian inflation remains high at 7 percent, despite 10 consecutive rate hikes by the Reserve Bank.
Sean Callow, a senior currency strategist, said renewed wage growth could lead to another rate hike of 25 basis points next week, which would be the 11th since May 2022.
This would follow a pause in April, the first in a year of RBA meetings.
The minutes of the April meeting showed that the board was considering a 25 basis point step before opting for a pause and that it is once again concerned both about the pace of population growth from immigration and about “a greater risk of greater wage increases.” in parts of the economy, including the public sector, later in the year,” Mr Callow said.
The Australian Council of Trade Unions last month called for a 7 percent increase in the minimum wage and a salary increase, based on inflation of 6.8 percent in February.
The more comprehensive March inflation figures from the Australian Bureau of Statistics showed a 9.8 percent annual increase in housing costs, which covers rent and construction costs.
Recreational and cultural costs rose 8.6 percent, compared to 6.5 percent for insurance and financial services.
The latest Consumer Price Index data shows inflation stubbornly above the Reserve Bank of Australia’s target of 2 to 3 percent (photo: Governor Philip Lowe)