Inflation continues upward trend

Inflation in Australia rose in March, according to new figures.

The TD Securities/Melbourne Institute monthly inflation gauge rose by 0.5% in March, following a 0.1% increase in February and a 0.2% increase in January.

Contributing to the inflation rate in March were price rises for holiday travel and accommodation, alcohol, tobacco and a 3.5% leap in the price of petrol.

The rises were offset by declines in the cost of meat, seafood, housing, clothing and footwear.

TD Securities’ head of Asia-Pacific research, Annette Beacher, said the figures did not suggest the Reserve Bank of Australia (RBA) should cut the official interest rate when it meets tomorrow.

“While expectations for a near-term rate cut have been reignited, we cannot identify clear triggers for the RBA to recommend a rate cut tomorrow, as lower inflation, lingering global risks and contractionary fiscal policy are slow-burn issues, not smoking guns,” Beacher says in a statement.

“We expect the RBA to remain relaxed and comfortable as neutral monetary policy is consistent with the bank’s forecasts for trend growth and trend inflation over the medium term.”

Trending

COMMENTS

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments