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Australian Core Inflation Near 8-Year Peak in Major Shock

Australian Bureau of Statistics data shows headline consumer price index (CPI) rose 1.3% in December quarter and 3.5% for 2021

Australia's Reserve Bank hiked rates for the fifth time in five months on Tuesday.
Australia's central bank has raised rates at every meeting since May, and appears open to going higher in its bid to curb high inflation. Photo: Reuters.


Australian core inflation accelerated to its fastest annual pace since 2014 in the December quarter as fuel and housing costs led broad-based price pressures, a shock that will stoke market speculation of an early hike in interest rates.

Data from the Australian Bureau of Statistics released on Tuesday showed the headline consumer price index (CPI) rose 1.3% in the fourth quarter and 3.5% for the year, above forecasts.

The trimmed mean measure of core inflation favoured by the Reserve Bank of Australia (RBA) jumped to 1.0% in the quarter, above forecasts of 0.7%. The annual pace picked up to 2.6%, above the 2.3% forecast and atop the middle of the RBA’s 2% to 3% target range.


  • Reuters with additional editing by Jim Pollard





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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.


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