Inflation shock puts end to hopes of interest rate cut
Inflation to May 2024 has taken a stunning turn, rising sharply and effectively quashing any hopes of an interest rate cut this year.
The inflation rebound few people saw coming has raised the prospect of another interest rate hike. (Image source: Shutterstock.com)
A shock rise in inflation for the year to May has extinguished any hope of an interest rate cut any time soon.
The monthly Consumer Price Index (CPI) indicator rose 4.0 per cent, up from 3.6 per cent in April, according to the latest data from the Australian Bureau of Statistics (ABS).
The figure is likely to send shockwaves through the corridors of the Reserve Bank of Australia’s Chifley Square offices in Sydney.
Michelle Marquardt, ABS head …
