Australia’s CPI rises in Q2
Australia’s consumer prices grew at the fastest annual pace in almost 13 years in the second quarter. This was attributed to higher gasoline prices and the unwinding of government subsidies. However, a far lower figure for core inflation signaled the rise would be brief.
The run-up has been overshadowed by events, with COVID-19 restrictions stalling economic recovery this quarter. This supports the decision to extend monetary and fiscal stimulus.
Data from the Australian Bureau of Statistics on Wednesday showed consumer price index (CPI) jumped 0.8% in the June quarter, marginally exceeding market forecasts of a 0.7% increase.
Gasoline contributed largely, followed by health care, fresh food, and motor vehicles, which saw an increase in price due to strong demand and supply bottlenecks.
Meanwhile, the Reserve Bank of Australia (RBA) showed inflation climbed 0.5% in the quarter and 1.6% for the year.