Australia reports lower-than-expected first-quarter inflation - but price growth hits 2-year high
CNBC • • world
Key Points:
- Australia's inflation rate rose to 4.09% in Q1 year-on-year, the highest in over two years, though slightly below the 4.2% forecast by economists.
- Inflation increased 1.4% from the previous quarter, with March's 4.6% reading driven by higher housing, transport, and food costs, marking the highest monthly CPI since 2025.
- The Reserve Bank of Australia (RBA) raised interest rates to 4.1% in March and signaled that further hikes may be needed due to persistent inflation and rising oil prices.
- RBA officials noted that inflation is expected to stay above the 2%-3% target range for some time, with global uncertainties, including Middle East developments, potentially exacerbating inflationary pressures.
- Australia's economy grew 2.6% year-on-year in Q4, its fastest growth in two years, surpassing expectations ahead of the RBA's upcoming policy meeting.
