Australia’s rising inflation lifts risk of 4th rate hike

Jul 26, 2022, 9:00 AM | Updated: 11:05 pm
Flowers on display at a shopping center in Sydney, Australia, Wednesday, July 27, 2022. The Austral...

Flowers on display at a shopping center in Sydney, Australia, Wednesday, July 27, 2022. The Australian Bureau of Statistics said on Wednesday inflation in the year through June was 6.1%, up from 5.1% in the year through March. Inflation only rose by 3.5% during the last calendar year. (AP Photo/Mark Baker)

(AP Photo/Mark Baker)

CANBERRA, Australia (AP) — Australian inflation rose farther, according to new data released on Wednesday that increases the likelihood of the central bank next week hiking interest rates for a fourth consecutive month.

Inflation in the year through June was 6.1%, up from 5.1% in the year through March, the Australian Bureau of Statistics said. Inflation only rose by 3.5% during the last calendar year.

Economist Angela Jackson, from the consultancy Impact Economics and Policy, predicted the Reserve Bank of Australia will lift the cash rate by half a percentage point to 1.85% at its next monthly board meeting Aug. 2.

The bank made rises of that size in its July and June meetings. The rate rose by a quarter of a percentage point in May, the first rate hike in more than 11 years.

“In terms of the headline figure at 6.1, it is still very high … and it means interest rates will probably go up again next month,” Jackson told Australian Broadcasting Corp.

Treasurer Jim Chalmers warned that inflation would rise further.

“We are not surprised to see inflation north of 6%, but it’s still confronting,” Chalmers said. “Inflation is high and rising. It will get tougher before it starts to ease.”

The center-left Labor Party government was elected in May and Parliament resumed Tuesday for the first time under the new administration.

Chalmers intends on Thursday to outline to Parliament Australia’s deteriorating economic outlook since the previous government announced its economic plan in March.

In March, Australia’s gross debt as a share of the economy was forecast to peak in mid-2025 at 44.9%, or 1.117 trillion Australian dollars ($773.2 billion). Net debt — gross debt less the value of selected financial assets — was predicted to peak at 33.1% of GDP, or 864.7 billion Australian dollars ($598.5 billion) a year later.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - In this photo provided by China's Xinhua News Agency, a People's Liberation Army member look...
Associated Press

China reaffirms threat of military force to annex Taiwan

BEIJING (AP) — China on Wednesday reaffirmed its threat to use military force to bring self-governing Taiwan under its control, amid threatening Chinese military exercises that have raised tensions between the sides to their highest level in years. The statement issued by the Cabinet’s Taiwan Affairs Office and its news department followed almost a week […]
22 hours ago
FILE - President Joe Biden shakes hands with veteran John Caruso as Biden tour's the Fort Worth VA ...
Associated Press

Veterans health bill marks a personal victory for Biden

WASHINGTON (AP) — As President Joe Biden rattled off policy proposals in this year’s State of the Union address, he hit an emotional note when talking about veterans who suffer from cancer after serving on military bases where toxic smoke billowed from burning trash. “One of those soldiers was my son Maj. Beau Biden,” he […]
22 hours ago
FILE - President Joe Biden shows a wind turbine size comparison chart during a meeting in the Roose...
Associated Press

‘We’re back, baby’: New bill boosts US climate credibility

WASHINGTON (AP) — After a moment when hopes dimmed that the United States could become an international leader on climate change, legislation that Congress is poised to approve could rejuvenate the country’s reputation and bolster its efforts to push other nations to reduce greenhouse gas emissions more quickly. The head-snapping turn of events, which has […]
22 hours ago
People walk on a damaged road near a subway station in Seoul, South Korea, Tuesday, Aug. 9, 2022. S...
Associated Press

Recovery underway in South Korea’s rain-hit capital area

SEOUL, South Korea (AP) — Cleanup and recovery efforts gained pace in South Korea’s greater capital region Wednesday as skies cleared after two days of record-breaking rainfall that unleashed flash floods, damaged thousands of buildings and roads and killed at least nine people. While lifting heavy rain warnings for Seoul and the neighboring metropolitan areas, […]
22 hours ago
FILE - Firefighters work the scene of a helicopter crash where former NBA basketball star Kobe Brya...
Associated Press

Kobe Bryant crash photos lawsuit to be heard by LA jury

LOS ANGELES (AP) — Kobe Bryant was one of the most photogenic sports figures in Los Angeles and images of him seen by millions around the world — smiling in victory, grimacing in agony — keep his memory alive. But some photos of him should never be seen, his widow says, and she’s seeking unspecified […]
22 hours ago
An election official holds up ballots for other officials and party agents to see, as they start to...
Associated Press

Kenyans waiting for results of close presidential election

NAIROBI, Kenya (AP) — Kenyans are waiting for the results of a close presidential election in which the turnout was lower than usual. Tuesday’s election was likely the final try by longtime opposition leader Raila Odinga, who on his fifth attempt was backed by former rival and outgoing President Uhuru Kenyatta. The other top contender […]
22 hours ago

Sponsored Articles

Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
...

Compassion International Is Determined to ‘Fill’ a Unique Type of Football ‘Stadium’

Compassion International SPONSORED — During this fall’s football season—and as the pandemic continues to impact the entire globe—one organization has been urging caring individuals to help it “fill” a unique type of “stadium” in order to make a lasting difference in the lives of many. Compassion International’s distinctive Fill the Stadium (FtS, fillthestadium.com) initiative provides […]
...

What are the Strongest, Greenest, Best Windows?

Lake Washington Windows & Doors SPONSORED — Fiberglass windows are an excellent choice for window replacement due to their fundamental strength and durability. There is no other type of window that lasts as long as fiberglass; so why go with anything else? Fiberglass windows are 8x stronger than vinyl, lower maintenance than wood, more thermally […]
Australia’s rising inflation lifts risk of 4th rate hike