Fed: Inflation hits four year high

AAP General News (Australia)
04-28-2000
Fed: Inflation hits four year high

CANBERRA, April 28 AAP - Inflation hit a four-year high of 2.8 per cent in the March
quarter, clearing the way for another interest rates rise next week.

The Australian Bureau of Statistics (ABS) said prices rose 0.9 per cent in the quarter,
up from 0.6 in the December quarter, and the equal highest quarterly rise in four and
a half years.

That lifted price rises for the year from 1.8 to 2.8 per cent, the highest annual increase
since June 1996 when the Howard government first came to power.

Almost half the increase was caused by higher petrol prices, which rose 7.8 per cent
in the quarter.

Other significant factors included rising house prices, which were up 1.6 per cent,
cigarettes, education, fresh vegetables, pharmaceuticals and vehicle insurance.

In the past 12 months the biggest increase was again petrol prices, which were up 24.1
per cent, with house prices also up 8.1 per cent.

Brisbane had the biggest price rises in the quarter of 1.1 per cent, followed by Canberra,
Hobart and Melbourne (1.0), Adelaide and Sydney (0.9) Darwin (0.6) and Perth (0.3 per
cent).

The dollar plunged two tenths of a cent on news of the figures, which were not as bad
as some analysts were predicting.

However, another rate rise of at least 0.25 per cent now appears certain next Wednesday,
after the Reserve Bank board meets on Tuesday.

AAP ss/mfh/adh/bwl

KEYWORD: INFLATION

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