Canberra, Oct 23 (IANS) Australia’s Treasurer Jim Chalmers on Monday warned of persistent inflation following a spike in petrol prices.
According to estimates released by the Treasury on Monday, consumer price index (CPI) data for the third quarter of 2023 will show petrol prices in Australia rose by 7 per cent between the start of July and the end of September, reports Xinhua news agency.
The Australian Bureau of Statistics (ABS) will on Wednesday release CPI data measuring Australian inflation for the September quarter.
Ahead of the release, the Treasury said it estimates that the spike in petrol prices will add a quarter of a percentage point to inflation.
Treasurer Chalmers said in a statement that inflation in Australia will likely remain higher longer than previously projected by the government as a result of global pressures.
“While inflation is moderating overall, it’s more persistent globally and so it will be more persistent here as well — and we expect to see some of this reflected in the quarterly inflation figures this week,” he said.
According to the most recent ABS data, the CPI rose by 5.2 per cent in the 12 months to the end of August — up from 4.9 per cent in the year to July.
The Reserve Bank of Australia (RBA), has a target to achieve an inflation rate of 2-3 per cent and will decide whether to raise interest rates to help reach that goal by 2025 at the next meeting of its board on November 7.
Following its meeting on Oct.ober 3 the RBA board noted that the rise in petrol prices would continue to “underpin inflation over coming months”.
Chalmers on Monday said petrol prices could continue to rise, with the conflict in the Middle East adding “further uncertainty”.