Australia’s consumer price index climbed 3.8% year-on-year in October, surpassing expectations of 3.6%.
Core inflation (the trimmed-mean measure) also picked up, reaching 3.3% versus 3.2% in September — a sign that inflation isn’t easing as quickly as hoped.
Housing costs rose notably, and there was a sharp increase in electricity prices after government rebates ended. These factors helped push inflation higher.
As a result, expectations that the Reserve Bank of Australia (RBA) would cut interest rates soon have been scaled back. Traders are now less confident in a near-term rate cut.
In short: inflation is proving stickier than expected in Australia, which means the RBA may wait longer before easing policy.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now