Inflation tipped to creep back into Reserve’s CPI target
Consumer prices are expected to have inched up in the March quarter, mainly on the back of higher fuel and food costs, taking headline inflation into the Reserve Bank of Australia’s target band for the first time in years.
However, continuing softness in core inflation means the central bank will likely keep the cash rate steady for the rest of this year, economist say.
The Consumer Price Index, set to be announced on Wednesday, is expected to have risen 0.6 per cent in the March quarter for an annual rate of 2.2 per cent, according to a survey of 12 economists. Full Story