Australia’s consumer prices rose more than forecast in the second quarter as high cost of food and fuel put pressure on inflation.
Prices rose by 3.6% in the three months to the end of June from the same period last year, latest data showed.
Food prices have been rising due to the devastation caused by floods and cyclones earlier this year.
The Australian dollar hit a record high against the US dollar on concerns that central bank will raise interest rates.
“It’s a nasty looking number,” said Michael Blythe of Commonwealth Bank of Australia.
“It suggests the direction of the next rate move is going to be up, even if there is some uncertainty about when the Reserve Bank might pull the trigger,” he added.
Categories: Australia