Chalmers warns inflation will only get worse after prices hit three-year high
Inflation in Australia reached a three-year high of 4.6 per cent in March, driven largely by a 33 per cent jump in petrol prices linked to the conflict in the Middle East. Treasurer Jim Chalmers warned that price pressures are expected to worsen before they ease, as the full impact of higher fuel costs spreads through the economy. The Reserve Bank faces growing pressure to raise interest rates for the third consecutive time, potentially increasing mortgage repayments further.
- ▪Inflation hit 4.6 per cent in March, the highest level in three years, primarily due to rising petrol prices from the Middle East conflict.
- ▪A 33 per cent surge in petrol prices accounted for three-quarters of the monthly inflation increase.
- ▪Without the oil price surge, inflation would have been 3.4 per cent, and prices for beef, lamb, and jewellery also rose due to strong demand and commodity price increases.
- ▪The Reserve Bank may deliver a third consecutive rate hike, raising repayments on a $600,000 mortgage by $300 monthly since January.
- ▪Treasurer Jim Chalmers stated inflation could peak higher as the war's economic effects continue to unfold before easing.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.