INFLATION has leapt to a 16-year high and is accelerating towards 5 per cent, raising the chance of further interest rate increases.
The Reserve Bank of Australia was braced for a bad inflation figure, but the 4.2 per cent jump in the headline figure for the year to March surpassed its worst fears.
» Inflation drives dollar to 24-yr high – The Australian – 23rd April 2008.
» Inflation shock to test interest rates – The Australian – 24th April 2008.