Inflation rises to 6.1%

The headline CPI rose by a very large 1.8%/qtr in Q2 22. This took the annual rate to 6.1%. Food, petrol, clothing and housing prices all rose strongly, as did holiday and accommodation prices. In this podcast Gareth Aird, Head of Australian Economics and Belinda Allen, Senior Economist discuss the CPI in detail and how this result compares in a global context. Importantly the outcome leaves us comfortable with our call that the RBA will lift the cash rate by 50bp at the August Board Meeting next week.  And we retail our central scenario for the cash rate to peak at 2.60% in late 2022.

 

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