- Inflation rose 4 percent in May
Australia’s inflation level has soared, adding to fears that borrowers will face further interest rate problems.
The monthly gauge shows the consumer price index rose 4 percent in the year to May, up from 3.6 percent in April.
Headline inflation is now further above the Reserve Bank’s 2 to 3 per cent target.
The bad news has been delivered just a week after RBA Governor Michele Bullock confirmed that a rate hike was more likely than a rate cut, with the cash rate this month left on hold at a high of 12 years of 4.35 percent.
“Yes, the board discussed the case for raising interest rates at this meeting,” he told reporters.
“No, the case of a cut was not considered.”
Australian Bureau of Statistics data, released on Wednesday, showed petrol prices rose 9.3 per cent over the year, ahead of insurance and financial services at 7.8 per cent.
Australia’s inflation level has risen, adding to fears that borrowers will face further interest rate problems.