Australia’s Core Inflation Rises to 3.6% in May, Becoming Advanced Economies’ No. 2 Outlier
Updated
Updated · The Australian Financial Review · Jul 5
Australia’s Core Inflation Rises to 3.6% in May, Becoming Advanced Economies’ No. 2 Outlier
2 articles · Updated · The Australian Financial Review · Jul 5
Summary
Australia’s trimmed mean inflation — the Reserve Bank’s preferred core measure — climbed to 3.6% in May, leaving the country tied for the highest core inflation rate among major developed economies.
That reading makes Australia the second-highest inflation outlier across advanced economies, behind only Iceland, according to Trading Economics data.
Economists say the persistence reflects the Reserve Bank’s failure to do enough to curb price pressures and the inflationary impact of elevated state and federal government spending.
The result sharpens Australia’s divergence from peer economies that have made faster progress in bringing underlying inflation under control.