Australia’s inflation is the highest in 21 years due to rising food and energy prices

Australian inflation rose to a 21-year high in 2Q22 and is likely to rise further. With food and energy costs soaring, it is predicted that the Reserve Bank of Australia will have to raise interest rates more than twice to contain inflation.

According to the Australian Bureau of Statistics (ABS), the Consumer Price Index (CPI) rose by 1.8% in the second quarter of this year.

The annual CPI rose from 5.1% to 6.1%, the highest level since 2001, and more than twice as high as wage growth.

The widely watched core CPI rose 1.5% in the second quarter, bringing the annual core inflation rate to 4.9%, it’s the highest level since records began in 2003.

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