Inflation in Australia accelerated 2.1% in the first quarter of this year to 5.1% annually.
The Australian Bureau of Statistics (ABS) has revealed that this is the highest quarterly and annual consumer price index rise since the introduction of the Goods and Services Tax (GST) in July 2000.
The most important factors for inflation in the March quarter were new housing, fuel and higher education.
ABS also said that demand for new homes remained high, allowing builders to pass on construction costs to homebuyers.
“Continuous shortages of building materials and labor, soaring fares, and continued strong demand have contributed to higher prices for new homes,” said Michelle Marquardt, head of price statistics at ABS. I am.
The capital with the largest increase in new homes purchased by homeowners was Perth, up 15.8%, followed by Brisbane and Melbourne.
Automotive fuel also increased by 11%, setting a new record for the third consecutive quarter following the global oil crisis caused by Russia’s invasion of Ukraine and increased demand due to deregulation of COVID-19.
“Annual price inflation of automotive fuels has been the highest since Iraq’s invasion of Kuwait in 1990,” Marquardt said.
Higher education prices rose 6.3% due to the continued impact of updated student contribution bands and tariffs introduced last year.
ABS also noted that there was a significant price increase across food products, driven by vegetables (6.6%), beef (7.6%) and soft drinks (5.6%).
“The rise of food groups has been eased by voucher programs in Sydney and Melbourne, which has reduced the out-of-pocket costs of eating out and takeaway food,” said Marquardt. “The Group’s grocery components, excluding eating out and takeaway food, increased by 4% in the March quarter.”
Higher food group prices reflect higher costs of transportation, fertilizer, raw materials, and COVID-related disruptions.
Meanwhile, the underlying inflation rate used by central banks to consider cash rates has risen to 3.7%, essentially removing the effects of volatile price volatility.
This means that inflation has exceeded the Reserve Bank of Australia’s (RBA) 2-3% inflation target for the first time in more than a decade, and it will make its first policy change at the next meeting on May 3. Put more pressure on the meeting. Federal elections.
ANZ Bank currently expects the RBA to raise its cash rate by 0.15 percent in May and 0.25 percent in June.
“Given this situation, the cash rate target of 0.1% is inadequate. Given that our own liaison program shows that” wage growth continued to recover in the March quarter. ” , I don’t think RBA needs to wait for more data on wages. “ANZ Australia’s Director of Economic Affairs, David Plank, said.
Inflation rates in Australia are well below those in Canada, New Zealand, the United Kingdom and the United States.