Australia’s cost of living crisis WORSENS with inflation hitting a new 32-year high – making another interest rate rise within weeks almost a certainty
- Australian inflation has hit new 32-year high of 7.8 per cent
- Highest consumer price index since March quarter of 1990
The consumer price index in the year to December surged at the fastest annual pace since the March quarter of 1990.
This means another interest rate rise on February 7 is almost a certainty with headline inflation well above the Reserve Bank’s 2 to 3 per cent target.
Australia’s cost of living crisis has worsened with inflation hitting a new 32-year high (pictured is a Woolworths shopper in Sydney’s eastern suburbs)
The Australian Bureau of Statistics figure, for the December quarter, was slightly less severe than the Reserve Bank’s forecast of 8 per cent, with the CPI rising by 7.3 per cent in the September quarter.
The December quarter inflation figures showed housing costs last year rising by 10.7 per cent, compared with a 9.2 per cent increase in food and non-alcoholic drink prices.
A closer breakdown of grocery items showed a 12.2 per cent annual surge in bread and cereal prices and an even more severe 14.9 per cent climb in dairy prices.
Petrol prices last year climbed by 13.2 per cent, after climbing above $2 a litre in March as Russia’s Ukraine invasion led to sanctions that pushed up global crude oil prices.
Petrol prices last year climbed by 13.2 per cent, after climbing above $2 a litre in March as Russia’s Ukraine invasion led to sanctions that pushed up global crude oil prices (pictured is a Sydney service station)