In the Asian session on Thursday (June 1), the Australian dollar/dollar rebounded from a low level, temporarily reported at 0.6494, a decrease of 0.14%. Economist Cherelle Murphy said Australia’s inflation was growing too fast.
The latest news from the Commonwealth of Australia:
Rising rent, fuel, entertainment and food costs pushed CPI to an annual rate of 6.8% in April from 6.3% in March. Murphy said the data confirmed that inflationary pressures remained widespread and felt across the economy. The outcome would disappoint the RBA and strengthen the case for tighter monetary policy ahead of next Tuesday’s policy meeting, she added. The Reserve Bank of Australia forecasts that inflation will fall to 6.3% by mid-year. While this is still possible, any stickiness in price increases, unexpected increases in rents or wages, and unexpected falls in productivity growth will keep it out of reach, Murphy said.
