[The Epoch Times, January 25, 2023](Reported by Epoch Times reporter Tianrui Australia, Sydney) Australia’s inflation rate rose further to 7.8% last year, reaching the highest point since 1990 and higher than the government’s expectations. This means that the possibility of raising interest rates next month has further increased.
According to the latest data from the Bureau of Statistics, Australia’s inflation rate in the fourth quarter of last year was 1.9%, and the seasonally adjusted annual inflation rate was as high as 7.8%, which was higher than the Ministry of Finance’s previous expectation of 7.75%. The Treasury expects inflation to peak in the fourth quarter of last year.
“People are traveling more, especially during the Christmas holidays, leading to higher domestic holiday travel spending and higher international airfares,” said Michelle Marquardt, head of price statistics at the Bureau of Statistics.
“The increase in domestic and international travel spending was significantly higher than in the fourth quarter of previous years.”
Inflation was the worst in the holiday travel and accommodation segment at 13%, with international travel spending up 7.6%; electricity prices also soared 8.6%.
New home price growth (1.7%) has slowed relative to recent quarters, but remains above historical levels.
“Labor and construction material costs are driving price growth in this segment, and there are signs of easing pressure on construction material costs,” Maquard said.
“The quarterly rate of inflation for new dwellings was lower this quarter compared with the past five quarters, reflecting slower demand for new dwelling construction.”
The latest report released by Domain Real Estate Network shows that last year, Sydney house prices recorded the largest annual decline in history, as high as 10.9%, and the median house price fell by more than 170,000 Australian dollars.
Rising inflation appears to be causing people to cut back on spending. NAB figures showed consumer spending fell 0.3 per cent in December, led by a 0.9 per cent fall in retail spending.
In December, the Reserve Bank of Australia raised the official cash rate to a decade high of 3.1 per cent. Given the further rise in inflation, the odds of a rate hike are also increasing. ◇
Editor in charge: Zong Minqing