Australia’s inflation rate quickened in the September quarter, boosted by higher petrol prices, adding to pressure on the Reserve Bank to hike interest rates again.
The headline consumer price index rose 1.2 per cent in July-September, up from 0.8 per cent in the June quarter, the Australian Bureau of Statistics reported on Wednesday. Economists had expected the quarterly rate to come in 1.1 per cent.
At an annual rate, headline CPI was 5.4 per cent compared with 6.0 per cent in the June quarter. Economists had predicted the annual rate to come in at 5.3 per cent, extending the decrease from a peak in the December quarter of 7.8 per cent.
Why it matters: The Reserve Bank has lifted interest rates since last year to combat inflation whilst still trying to engineer a soft economic landing. Governor Michele Bullock said on Tuesday she would not hesitate to raise rates further if there was a material upward revision to the outlook for inflation.
What has changed: Surging oil prices in the September quarter have driven up costs adding to global inflation pressures.
What next: The RBA is due to meet on November 7, when it will decide whether to leave the cash rate at 4.1 per cent for a fifth consecutive month.