Australia’s inflation rises to 4%, stoking concern interest rates could increase again

Australia’s monthly inflation rate increased to its highest level in 2024 in the latest indication that the Reserve Bank won’t be cutting interest rates soon and might yet hike again.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundupFood presented a mixed price picture. Overall prices were up 3.3% from May 2023, a slowdown from April’s 3.8% pace. Fruit and vegetable prices, though, climbed 4.4% compared with May 2023, continuing a recent rebound after prices posted a 1.2% drop in March.

The RBA has said it won’t hesitate to raise its key interest rate – for a 14th time in this cycle – if it loses confidence that inflation can fall back within its 2%-3% target by the end of next year.. It is banking on energy rebates and other measures to “mechanically” lower the CPI even as the stage-three cuts inject more than $20bn into the economy this coming financial year.

“We’ve now had four months in a row of accelerating core inflation. This will no doubt be of concern to the independent Reserve Bank.” “It’s worrying news for borrowers with an increase of 0.25 adding $100 to the monthly repayment on a $600,000 loan over 30 years,” he said. “Even without a rate increase, a three-month extension before a rate cut adds $288 in extra repayments to the same loan.”

Source: Loan Digest (loandigest.net)

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Maturing Nicolò Barella and Italy driven by pain of missing World CupInter midfielder’s partnership with Jorginho is earning media plaudits after Euro 2024 win over Albania
Source: GuardianAus - 🏆 1. / 98 Read more »

Tour de France 2024: stage-by-stage guide to this year’s raceA Grand Départ in Florence and a finish in Nice rather than Paris will not please traditionalists, but there is plenty of familiar terrain in between
Source: GuardianAus - 🏆 1. / 98 Read more »

Ukraine v Belgium: Euro 2024Minute-by-minute report: Both teams can reach the last 16 with the right result. Join Barry Glendenning for updates
Source: GuardianAus - 🏆 1. / 98 Read more »

Kylian Mbappé is back but he needs help if France are to win Euro 2024France only scored two goals in their three group matches – a penalty against Poland and an own goal against Austria
Source: GuardianAus - 🏆 1. / 98 Read more »

BHP share price: BHP’s carbon emissions to increase in 2024However, the company says it is still on track to reach its self-imposed 2030 emissions target without buying carbon offsets.
Source: FinancialReview - 🏆 2. / 90 Read more »

Euro 2024: England await last-16 opponents as group stage comes to endFollow the latest including fallout from England v Slovenia and buildup to the finale of Groups E and F
Source: GuardianAus - 🏆 1. / 98 Read more »