Australian inflation raced to a 32-year high last quarter as the cost of home building and gas surged.
This comes as a shock result that stoked pressure for a return to more aggressive rate hikes by the country’s central bank.
Data from the Australian Bureau of Statistics (ABS) on Wednesday showed the consumer price index (CPI) jumped 1.8 per cent in the September quarter, topping market forecasts of 1.6 per cent.
The annual rate shot up to 7.3 per cent, from 6.1 per cent, the highest since 1990 and almost three times the pace of wage growth.
Marcel Thieliant, a senior economist at Capital Economics said; “The upshot is that CPI inflation will approach 8 per cent in Q4.
“The stronger-than-expected rise in consumer prices is consistent with our forecast that the RBA will hike rates more aggressively than most anticipate."
Quadri Adejumo covers World News, Health, Climate & Humanitarian.
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