Reported 4 months ago
Australia's inflation rose faster than expected in April, with the monthly consumer price index increasing by 3.6% from a year earlier, surpassing economists' estimates of 3.4%. This elevated inflation suggests the Reserve Bank of Australia (RBA) is likely to maintain interest rates at a 12-year high next month. The core measure, which excludes volatile items, remained at 4.1%. Economists are now predicting a 27% chance of an RBA rate hike in September, compared to less than 20% prior to the data release, while rate cuts are not expected until at least the middle of 2025. The RBA remains cautious about inflation risks, especially driven by volatile food prices, amidst signs of economic slowdown.
Source: YAHOO