Australia reports lower-than-expected first-quarter inflation — but price growth hits 2-year high
SYDNEY, AUSTRALIA – DECEMBER 06: Pedestrians and shoppers move along George Street on December 06, 2024 in Sydney, Australia.
Lisa Maree Williams | Getty Images News | Getty Images
Australia’s inflation rate In the first quarter, it rose to 4.09% from a year ago, reaching the highest level in more than two years.
The reading remained below the 4.2% expectation of economists surveyed by Reuters, but still increased the possibility of an interest rate hike by the Reserve Bank of Australia.
Prices increased by 1.4% compared to the previous quarter. Inflation rose to 4.6% in March, mainly due to higher housing, transportation and food costs.
The 4.6 per cent 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. At its meeting in March, the central bank raised interest rates to 4.1%, the highest level since April 2025.
“Developments in the Middle East remain highly uncertain, but a wide range of possible scenarios could contribute to global and domestic inflation,” the RBA said. After the March meeting.
The board said it expects inflation to remain above the 2-3 percent target for a while.
RBA Governor Michelle Bullock said board members agreed rates may need to rise further, although they differed on the timing.
Minutes of the meeting showed that policymakers still viewed inflation as “too high” and stated: An increase may be needed in the near term.
The minutes stated that “the rise in oil prices further increases the risk of inflation remaining above the target for a long time.”
The Australian economy grew by 2.6% in the fourth quarter compared to the previous year, achieving the fastest growth in the last two years and exceeding expectations.
This is breaking news, please check back for updates.
