Inflation skyrockets to the highest level in 21 years as the cost of everyday items soars: Why it’s going to hurt EVERY Australian
- Australia’s inflation has surged by 5.1 per cent – the fastest pace in 21 years
- Headline inflation in year to March above Reserve Bank’s 2 to 3 per cent target
- This increases chance of a May 3 rate rise – just 18 days before May 21 election
- How is the cost of living affecting you? Email us at [email protected]
Australia’s inflation has surged by 5.1 per cent – the fastest pace in 21 years.
The consumer price index in the year to March soared at an even more dramatic pace than it did at the height of the Global Financial Crisis, with price increases now at the most elevated since June 2001.
Headline inflation was higher than the 4.5 per cent pace financial markets were expecting, which makes an early interest rate rise on May 3 – 18 days before the May 21 election – more likely.
This would mark the first election campaign rate rise from the Reserve Bank of Australia since November 2007, when Liberal prime minister John Howard lost power.
Australia’s inflation has surged by 5.1 per cent – the fastest pace in 21 years
The inflation rate is also significantly well above the Reserve Bank of Australia’s two to three per cent target, which means borrowers could be hit with an early rate rise in May or an even bigger one in June.
Home prices climbed by 5.7 per cent as petrol prices soared by 11 per cent, the Australian Bureau of Statistics revealed on Wednesday.
The March quarter reporting period covered the federal government halving fuel excise to 22.1 cents a litre in the March 29 Budget after average unleaded prices had surged above $2 a litre for the first time ever.