Australia Inflation Strongest Since 2023

(RTTNews) - Australia's consumer prices inflation accelerated at the fastest pace since 2023, driven by increases in housing and transport costs, data released by the Australian Bureau of Statistics showed Wednesday.

Consumer prices increased 4.6 percent on a yearly basis in March, marking the strongest inflation since September 2023. Although inflation accelerated from 3.7 percent seen in February, it remained below the economists' forecast of 4.8 percent.

The largest contributor to the annual rate was housing, which grew 6.5 percent. Transport cost advanced 8.9 percent and food and non-alcoholic beverages prices moved up 3.1 percent.

Trimmed mean inflation was unchanged at 3.3 percent in March.

On a monthly basis, consumer prices grew 1.1 percent as a 32.8 percent surge in automotive fuel prices led to a 9.2 percent rise in transport costs.

In the first quarter, consumer prices rose to 1.4 percent from the previous quarter. J.P. Morgan Chief Economist Ben K Jarman said the Reserve Bank of Australia is expected to raise its benchmark rate by 25 basis points next week with a tightening bias but on-hold policy thereafter.

Earlier in March, the RBA had lifted its interest rate by a quarter-point citing material risk to inflation amid the war in the Middle East. The central bank is likely to lift its December 2026 inflation outlook due to adverse impact from the supply shock, the economist said.