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Inflation in Australia continues to exceed market expectations, rising in April 2023.
New data from the Australian Bureau of Statistics (ABS) showed that on an annual basis inflation rose to 6.8 per cent, up from 6.3 per cent the month prior.
This month's annual increase of 6.8 per cent is higher than the 6.3 per cent annual rise reported in March 2023, but is below the high of 8.4 per cent recorded in December 2022.
READ MORE: RBA hints more rate rises 'may be required'
Michelle Marquardt, head of price statistics at the ABS, said the soaring price of fuel was primarily to blame for consistently high inflation in April.
"It's important to note that a significant contributor to the increase in the annual movement in April was automotive fuel," she said.
"The halving of the fuel excise tax in April 2022, which was fully unwound in October 2022, is impacting the annual movement for April 2023."
The Consumer Price Index – or CPI – tracks the change in the prices across a representative basket of goods and services.
Today's increase largely surprised market expectations, and increases the chances that the Reserve Bank of Australia will increase the official cash rate when it meets next week.
More to come…
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