Australia's Inflation Surges Amid Fuel Shock

0:00It's March 25th, Sydney news today starts now, AI powered and ready, I'm Cory with the story. Australia's February inflation figures came in at 3.7% annually, a slight drop from January, with underlying inflation steady at 3.3%. But the data fell outdated almost instantly, thanks to skyrocketing petrol prices from the conflict in Iran. Petrol prices nationwide actually fell 3.4% through February, but they since jumped more than 56 cents per liter AA, 29% surge, or higher in many spots. In Sydney alone, averages hit 223 cents per liter this month, peaking even higher midweek. Market shrugged off the mild numbers, with investors now betting on multiple reserve bank rate hikes. They see the cash rate climbing to 4.6% by Christmas, or possibly 4.85% as officials signal they're ready, to fight inflation at any cost. Wages aren't the culprit here. Recent enterprise deals average just 3.8% rises, the lowest in months.

1:05Instead, rising profit margins fueled late last year's inflation spike, and this fuel supply shock will make things worse, especially for low income. Folks scraping by on job seeker payments. Expect March and June numbers to climb sharply, pushing inflation beyond earlier forecasts, with the bank likely hiking rates, regardless of the cause.