Inflation in Australia surprisingly strong, raises odds of Nov rate hike

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Data from the Australian Bureau of Statistics on Wednesday showed the consumer price index (CPI) rose 1.2%

Australian inflation was surprisingly strong in the third quarter amid broad-based and stubborn cost pressures, a headache for policymakers that added greatly to the risk of a rise in interest rates as early as next month.

in the third quarter, above market forecasts of 1.1% and up from a 0.8% increase the previous quarter. Worryingly, a closely watched measure of core inflation, the trimmed mean, rose 1.2% in the third quarter, to top forecasts of 1.1%. The annual pace slowed to 5.2%, from 5.9%.

 

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