Australia’s inflation rate has climbed to 4.3 per cent, raising the prospect of a fifth interest rate rise this year when the Reserve Bank meets next week, according to figures released by the Australian Bureau of Statistics on Wednesday.
The headline figure was accompanied by an underlying inflation reading of 3.6 per cent for the year to September. The underlying measure, which strips out volatile prices, is the central bank’s preferred gauge, and its elevation has sharpened expectations that borrowing costs will rise again when the bank’s board meets on November 3.
The bank’s deputy governor, Andrew Hauser, described the numbers as too high when he appeared before Senate estimates on Wednesday, shortly after the data was published. He warned of a serious risk that expectations of persistently higher prices could take hold among households and businesses, which would make inflation harder to remove from the economy, while noting that he did not believe that risk had yet materialised.
The cash rate already stands at 4.6 per cent, its highest level in 15 years, and it feeds through to lending rates, including home loans. Transport was the standout pressure in the latest figures, with costs up 8.7 per cent over the past year, driven in large part by rising fuel prices. Another increase would therefore land directly on mortgage holders at a moment when household budgets are already stretched.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.