Sticky inflation points to more interest rate hikes for Australia

The Reserve Bank of Australia may need a series of interest rate increases to put inflation to rest. (Image: RBA)

Thu, 27 Jun 2024

Australia's trimmed mean inflation rose to 4.4% in May, putting it well above the central bank’s forecast of 4% for the full year to June.The stark reality of Australia’s growing problem with sticky inflation is that the Reserve Bank of Australia (RBA) may soon have to embark on a full-blooded extension of its tightening cycle, announcing not just one more rate hike but a series of increases to put the matter to rest.The problem has grown clearer in the data over recent months, with inflation rising to 4% in May from a year earl...

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