Australia inflation jumps to 4.6%

Australia’s inflation rate jumped to 4.6% in March, its highest annual pace since September 2023, after fuel costs surged. (abs.gov.au) The Australian Bureau of Statistics said consumer prices rose 1.1% in March alone, with transport up 9.2% as automotive fuel prices climbed 32.8% in a single month. (abs.gov.au) (abc.net.au) Housing was still the biggest contributor to annual inflation, rising 6.5%, while transport rose 8.9% over the year. (abs.gov.au) The quarterly picture also hardened. Australia’s consumer price index rose 1.4% in the first quarter, the sharpest quarterly increase since late 2023, while annual quarterly inflation reached 4.1%. (money.usnews.com) (cnbc.com) Underlying inflation did not ease much. Reuters reported the trimmed mean, the Reserve Bank of Australia’s core gauge, rose 0.8% in the quarter and 3.5% over the year, still above the bank’s 2% to 3% target band. (money.usnews.com) The monthly core reading looked slightly softer. ABC reported trimmed mean inflation held at 3.3% in March, a sign that the fuel shock was doing more damage to headline prices than to the broader basket. (abc.net.au) Food was not the main reason inflation re-accelerated, but it stayed sticky. Rabobank analyst Michael Harvey said meat and out-of-home meals were the biggest contributors within food, with beef and lamb prices up 11.8% from a year earlier. (beefcentral.com) The timing matters for the Reserve Bank. Its cash rate target is 4.10%, and its next policy decision is due on May 5, with officials already warning in March that Middle East tensions could add to inflation. (rba.gov.au) (cnbc.com) For households, the new numbers mean petrol, rent and groceries are all still pulling in the same direction. For policymakers, they mean inflation is moving away from target again just weeks after rates were raised. (abs.gov.au) (cnbc.com)