Australia’s inflation tops forecasts at 3.2%, highest in over a year
Tourists sit on a barrier at the Sydney Opera House.
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Inflation in Australia accelerated in the third quarter; consumer prices increased by 3.2% compared to the previous year; This was the fastest increase in more than a year. Australian Bureau of Statistics He said Wednesday.
The increase was on top of a 2.1% increase in the second quarter and above the 3% forecast of economists polled by Reuters.
ABS said the most significant price increases were in housing, entertainment and culture and transportation.
The shortened average inflation rate, which excludes extreme price changes in consumer goods and services, rose to 3% from 2.7% last quarter. This was the first increase in reduced average inflation since December 2022, the bureau said.
The headline rate of 3.2% pushed inflation beyond the Reserve Bank of Australia’s 2%-3% target range for the first time since the second quarter of 2024 and underlined the challenges policymakers face in reining in persistent price pressures.
In its Monetary Policy Statement in September, the RBA warned that inflation could be “higher than expected” this quarter, citing sticky prices for housing and market services.
RBA Governor Michelle Bullock said: He stressed last month that inflation in these regions was “slightly higher than we expected” but that this did not mean inflation had “run away”.
In August, the central bank predicted that headline inflation would continue to moderate towards the mid-point of the 2%-3% range, while assuming the cash rate would follow a “path of gradual easing”.
Latest headline CPI readings July and August It was above expectations in both months, with 2.8% and 3% respectively. September inflation figures It was at its highest level since July 2024, at 3.5%.
Australia’s central bank kept its policy rate steady at its last meeting and noted that inflation remained stubborn in some parts of the economy.
The country’s economy performed above expectations in the second quarter, growing by 1.8% compared to the previous year, recording the fastest growth since September 2023. This was above the 1.6% expected by economists polled by Reuters and above the 1.3% seen in the previous quarter.
