Consumer price pressures are mounting in Australia with inflation continuing to strengthen to a 21-year high with higher fuel and food costs remaining the main drivers.
The consumer price index (CPI) in the three months to June 2022, rose to 6.1% from a year ago, and was higher than the first quarter which was recorded at 5.1%.
However, the reading was slightly off the market's expectations for a 6.3% increase. Despite this, consumer prices remain at their highest level since 2001.
Food prices jumped the most since the third quarter of 2011 to 5.9%, while transport costs remained firm at 13.1% as fuel prices rose to record levels for the fourth consecutive quarter.
Russia's war in Ukraine remains a factor in the spike in energy costs as more sanctions are imposed by the West on Moscow.
Following a slightly missed reading, investors once again dismissed expectations for a 75 basis point increase by the Reserve Bank of Australia (RBA) and instead maintained a 50 basis point increase.
The Aussie dollar traded lower following the reading of the data, in addition to being affected by risky market sentiment following concerns about a global recession.
