Australian Inflation Exceeds Expectations, Increases Pressure on Rate Hike

Australian Inflation Exceeds Expectations, Increases Pressure on Rate Hike
Shoppers ride an escalator at Melbourne Central during the Boxing Day sales in Melbourne, Australia on Dec. 26, 2021. Diego Fedele/Getty Images
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Australia’s annual inflation rate has smashed market expectations, rising 3.5 percent in 2021, according to new data from the Australian Bureau of Statistics (ABS).

The underlying inflation rate also jumped to its highest level since 2014, at 2.6 percent, reflecting the broad level of price increases.