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>>Australian CPI inflation shows worrying persistence, prompting a hawkish RBA rate outlook

Australian CPI inflation shows worrying persistence, prompting a hawkish RBA rate outlook

crypthub

about 2 hours ago

Inflation Remains Stubborn

March 2025 CPI recorded 3.8% headline inflation and a 3.5% trimmed‑mean core, above the RBA’s 2‑3% target. Services such as health, education and insurance, together with the fastest rent growth in years, led the rise. Strong domestic demand and rising unit‑labour costs now dominate the price‑pressures picture.

RBA Keeps Hawkish Tone

The data give the Reserve Bank of Australia a clear reason to stay tight. Governor Bullock warned that further hikes remain possible if inflation stays sticky. Markets have pushed expectations for the first rate cut to late 2025 or early 2026, lifting the Australian dollar.

Broader Economic Effects

Variable‑rate mortgage borrowers face prolonged high repayments and firms meet costlier financing. Unemployment stays low and wages remain solid, signalling underlying strength. Retail sales slip while travel, hospitality and mining stay resilient, and housing prices keep climbing in cities despite tight credit because supply is scarce.