SYDNEY, AUSTRALIA – DECEMBER 06: Pedestrians and shoppers walk on George Street on December 06, 2024 in Sydney, Australia.
Lisa Marie Williams | Getty Images News | getty images
Australia’s inflation rate rose to 4.09% in the first quarter, its highest level in more than two years.
The first-quarter inflation figure was less than the 4.2% expected by economists polled by Reuters, but it still raised prospects of an interest rate hike by the Reserve Bank of Australia.
The data also comes ahead of the Reserve Bank of Australia’s policy meeting next week. The central bank raised rates at its March meeting to 4.1%, the highest level since April 2025.
“Growth in the Middle East remains highly uncertain, but global and domestic inflation could rise under a wide range of possible scenarios,” the RBA said. after the march meeting.
The board said it expects inflation to remain above its 2%-3% target for some time.
RBA Governor Michelle Bullock said board members agreed that further rate rises may be needed, although they differ on timing.
Minutes of the meeting revealed that policymakers considered inflation still “very high” and said Increase may be required in the near term.
“Rising oil prices have further increased the risk that inflation will remain above target for a prolonged period,” the statement said.
Australia’s economy grew 2.6% in the fourth quarter from a year earlier, its fastest pace in two years, beating expectations.
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