Australia stories lower-than-expected first-quarter inflation — however worth rise highest in 2 years

Australia’s inflation charge soared to 4.09% within the first quarter from a yr in the past, marking its highest degree in additional than two years.

The primary-quarter inflation determine was decrease than the 4.2% anticipated by economists polled by Reuters, but it surely nonetheless raises the prospects of an rate of interest hike by the Reserve Financial institution of Australia.

On a quarterly foundation, inflation rose 1.4% from the previous interval. In March alone, the inflation charge climbed to 4.6%, pushed principally by worth rises in housing, transport and meals.

The 4.6% determine was additionally the best on file since Australia transitioned to a month-to-month reporting of inflation again in 2025.

The information additionally comes forward of the Reserve Financial institution of Australia’s coverage assembly subsequent week. The central financial institution raised charges to 4.1% at its March assembly, the best degree since April 2025.

“Developments within the Center East stay extremely unsure, however underneath a variety of doable situations may add to world and home inflation,” the RBA stated after its March assembly.

The board stated it expects inflation to stay above its 2%–3% goal for a while.

RBA Governor Michelle Bullock stated board members agreed that charges could have to rise additional, although they differed on timing.

Minutes from the assembly confirmed policymakers seen inflation as nonetheless “too excessive” and stated a near-term improve could also be wanted.

“The rise in oil costs had additional elevated the danger that inflation would stay above goal for a protracted interval,” the minutes stated.

Australia’s financial system grew 2.6% from a yr earlier within the fourth quarter, its quickest tempo in two years, beating expectations.

That is breaking information, please test again for updates.