IMF Warns Australia Set for One of Highest Inflation Rates in Developed World

Analysts warn Australia’s fuel excise cut to soften fuel price hikes was the wrong move.

Australian dollars coins in Melbourne, Australia, on April 4, 2024. AAP Image/Joel Carrett

The International Monetary Fund (IMF) says Australia is on track to have one of the highest inflation rates in the developed world.

In the latest edition of its World Economic Outlook, the global lender said economies around the world “face repercussions [from] the direct impact of higher commodity prices, indirect second-order effects on inflation expectations—which tend to be especially sensitive to energy and food prices—and amplification effects coming from [conservative] sentiment in financial markets.”