Consumer prices in Australia rose at their fastest pace in more than two decades last quarter and are likely to accelerate even further, as food and energy costs explode.
The gloomy report on Wednesday showing inflation jumped 1.8% in the June quarter stoked speculation interest rates will need to more than double to bring the outbreak under control.
The annual rate picked up to 6.1%, from 5.1% in the year through March, the highest since 2001 and more than twice the pace of wage growth, data from the Australian Bureau of Statistics showed. Inflation only rose by 3.5% during the last calendar year.
Treasurer Jim Chalmers warned that inflation would rise further.
“We are not surprised to see inflation north of 6%, but it’s still confronting,” Chalmers said. “Inflation is high and rising. It will get tougher before it starts to ease.”
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