Interest rates are the only tool for managing inflation
The latest data from the Australian Bureau of Statistics revealed a 1 per cent increase in prices during the March quarter, pushing the annual inflation rate to 3.6 per cent. Economists had anticipated a milder 0.8 per cent increase for the quarter and a 3.5 per cent annual inflation rate.
The higher-than-expected inflation figure has sparked anticipation for a possible interest rate rise at Tuesday’s Reserve Bank of Australia meeting.