Australia's inflation rate surged to 7.3% annually in the September...

Australia's inflation rate surged to 7.3% annually in the September quarter, driven by soaring energy prices, marking the highest rate since June 1990. This increase, from 1.8% in the July to September period, pressures households and businesses and indicates further interest rate hikes. With inflation expected to peak at 7.75% later this year, the Reserve Bank of Australia (RBA) aims to return inflation to its 2%-3% target range. The recent budget forecasts the RBA's cash rate to reach 3.35%, as global central banks simultaneously tighten monetary policy to combat inflation. The RBA's recent smaller rate rise suggests a strategy adjustment, with September's inflation figures likely influencing continued rate increases.

Tuesday, 25 October, 2022