Shock as inflation goes UP in Australia despite 11 interest rate hikes as experts reveal why the pain may just keep coming
- Inflation went up in April by 6.8 per cent
- This was more than March rise of 6.3 per cent
Inflation has gone up despite the Reserve Bank hiking interest rates 11 times in a year – stirring fears of another hike next week.
The official monthly measure for April showed a reading of 6.8 per cent, up from 6.3 per cent in March, the Australian Bureau of Statistics revealed on Wednesday.
Economist Warren Hogan, the managing director of EQ Economics, said the bad news could see the Reserve Bank raise interest rates again on Tuesday next week.
This would make the 12th hike since May 2022, with rates already surging at the steepest pace since 1989.
‘Bottom line is inflation down from peak but not looking like coming down quickly. Confirms strong tightening bias. Can’t rule out a hike next week,’ Mr Hogan tweeted.
Inflation has gone up despite the Reserve Bank hiking interest rates 11 times in a year.
The numbers were revealed after Reserve Bank of Australia Governor Philip Lowe told a parliamentary hearing inflation could stay high if wage rises didn’t occur at the same time as productivity improvements.
‘The problem is weak productivity growth,’ he told the Senate economics committee on Wednesday.
‘Over the last three years, there has been no increase in the average output produced per hour worked in Australia. No increase for three years and that’s a problem.
‘And that means unit labour costs growth in Australia is quite high.
‘It’s a problem for the country and it’s a problem for the inflation outlook as well.’
