According to data published by the Australian Bureau of Statistics (ABS) on Wednesday, Australia’s inflation rate rose by 6.8 percent in the year to April.
It is compared to the 6.3 percent increase in the 12 months to March, but remains lower than the 8.4 percent recorded in December 2022.
The spike was largely driven by an increase in fuel prices after the end of the temporary cut in the government’s fuel excise tax.
“Automotive fuel prices were 9.5 percent higher this month than they were in April 2022 when prices fell following the 22 cents per liter cut in the fuel excise introduced on 30 March 2022,” Michelle Marquardt, ABS head of prices statistics, said in a media release.
In the same period, the prices of housing, food and transport all rose by over 7 percent.
New dwelling price rose by 9.2 percent, the smallest annual figure since February 2022 as the cost of building materials continued to fall in the wake of the COVID-19 pandemic.
The data will be a key factor when the board of the Reserve Bank of Australia (RBA) decides on interest rates at its next meeting early in June. ■