Business News Asia
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) has risen to a 32-year high of 7.8% in the fourth quarter of 2022. This marks the fastest increase in inflation since March 1990.
According to the ABS, the increase in CPI in Q4/2022 was driven by rising food prices, automotive fuel, and the construction of new housing. Additionally, the cost of domestic and international travel saw the largest increase at 13.3% and 7.6%, respectively.
Economists had expected the fourth-quarter 2022 CPI to rise 7.5%, below the Reserve Bank of Australia’s forecast of 8%, while goods prices rose 9.5%, below the 9.6% increase in the third quarter. The overall increase in goods prices was 5.5%, the highest since 2008.
This spike in inflation is likely to be a concern for the Reserve Bank of Australia, which may consider raising interest rates in response. However, the bank may also consider other factors such as economic growth and unemployment before making a decision.
The ABS has stated that the inflation data is subject to revision and that the next release of the Consumer Price Index will be on February 17,2023.