Inflation in Australia

Australia Inflation | Economic News & Forecasts

Australia - Inflation

Inflation at over three-decades high in Q2

In the second quarter of 2022, consumer prices soared 1.8% over the previous quarter, following Q1’s 2.1% jump.

Annual inflation came in at 6.1% in Q2, up from Q1’s 2.1%, hitting the highest reading since Q4 1990. Therefore, inflation moved further above the Reserve Bank’s 2.0%–3.0% target band.

Commenting on the short-term implications for monetary policy, Lee Sue Ann, economist at UOB, stated:

“Our current full-year inflation forecast of 5.0% remains, underscoring the RBA’s rapid tightening cycle since May that lifted the cash rate to 1.35% from 0.10% as it tries to ensure inflation expectations remain anchored around its 2-3% target. While today’s readings came in slightly slower than expected, the 6.1% y/y reading is still above the RBA’s forecast in May of 5.5%. This is why we are anticipating another 50bps hike in the OCR at the upcoming 2 Aug meeting. We then see the RBA slowing to 25 basis points increments.”

Our panelists see inflation averaging 4.5% in 2022 and 3.3% in 2023.

Australia - Inflation Data

2015   2016   2017   2018   2019  
Inflation Rate (CPI, annual variation in %)1.5  1.3  1.9  1.9  1.6  

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Australia Inflation Chart

Australia Inflation
Note: Annual average variation of consumer price index (CPI) in %.
Source: Australia Bureau of Statistics and FocusEconomics calculations.

Australia Facts

Value Change Date
Bond Yield1.371.47 %Dec 31
Exchange Rate0.700.05 %Dec 31

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