Monthly inflation rose 7.3% from 6.9%
Retail sales jumped 2 times
Investors expect a rate hike of 25 basis points
Expectations for an interest rate hike by the Reserve Bank of Australia (RBA) rose again following the release of stronger-than-expected inflation and retail sales data.
The consumer price index (CPI) indicator rose 7.3% in November from a year earlier, rebounding from 6.9% in October and exceeding market expectations of a 7.2% increase.
Meanwhile, retail sales were reported to have jumped by 1.4% in November, more than double the forecast for a 0.4% increase.
The figures pushed the Aussie dollar to remain strong at near 5-month highs against a weaker greenback.
The market is now reinforcing expectations of a rate hike of 25 basis points following the release of the two data, with the prime rate forecast to rise to around 3.9% later this year.
Australia usually provides inflation data on a quarterly basis, but in the latest move, the Australian Bureau of Statistics (ABS) is introducing monthly CPI readings in the second half of 2022.
For readers' information, the inflation reading for the fourth quarter of 2022 will be published on January 25.
