Inflation has risen to 5.1%, according to the latest figures from the ABS.
The 5.1% annual consumer price index (CPI) figure for the last quarter was above market expectations of 4.6%. According to economist Richard Dennis, this is roughly twice the rate of real wage growth across the economy leading to the worst real pay cut for workers this century.
According to Michele O’Neil the president of the ACTU this represents a pay cut of nearly $2000 in the first half of this year. Trimmed mean inflation used by the central bank to set rates, which ignores volatile changes, rose to 3.7% which is above the RBA’s target range.
#ABS Annualised Aust #inflation lifts#CPI (Mar 22)
YoY = 5.1% (was 3.5%)📈
QoQ = 2.1% (was 1.3%)📈
🔸#RBA targets "trimmed mean .. over time" @ 2-3%
(ignores volatile extreme elements)
since Sept 21: 2.1% to 2.6%; now 📈to 3.7% (YoY)
[Westpac estimate 3.4%]#ausecon pic.twitter.com/Ux1wMfDnb8— 13foot7 (@13foot7) April 27, 2022
Callum Foote was a reporter for Michael West Media for four years.