Inflation jumps to 4.6% in Australia as Iran war fuel shock begins to bite
Summary
Inflation in Australia rose to 4.6% in the year ending March, up from 3.7% the previous month, driven largely by higher fuel prices linked to the conflict involving Iran. The Reserve Bank of Australia is expected to increase interest rates again to try to control rising inflation as fuel costs push up the prices of many goods.Key Facts
- Inflation in Australia increased to 4.6% in the year to March, up from 3.7% the month before.
- Rising fuel prices are connected to the conflict in the Middle East, which affects oil supply through the Strait of Hormuz.
- International oil prices went above $110 per barrel due to ongoing conflict involving the US and Israel.
- Fuel costs in Australia rose by 33% in the month before a fuel tax cut was applied.
- Underlying inflation, which removes volatile price changes like fuel and electricity, stayed steady at 3.3%.
- Inflation measured by quarterly figures rose to 4.1% in the latest report.
- Economists predict inflation could reach 5.8% by May before gradually declining later in the year.
- The Australian government has cut fuel tax and introduced a GST rebate on petrol and diesel to help with rising costs.
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