Australia: Inflation hits highest level since 1990 | Finance

People shop at a supermarket in Canberra, Australia. (Photo: AFP/VNA)

According to the Vietnam News Agency correspondent in Sydney, the Australian Bureau of Statistics said: inflationary in the country rose to 7.8% in 2022, the highest level since 1990. This is due to the higher cost of domestic and international holidays, coupled with higher electricity prices. .

Inflation of 7.8% was higher than government expectations, but still below the Reserve Bank of Australia’s forecast of 8%. The Australian Treasury and its leading economists expect this to be the culmination of the current surge in inflation.

There are signs that rising inflation is causing people to spending. According to data from the National Australia Bank (NAB), household spending has started to decline, specifically falling 0.3% in December 2022, while retail spending decreased by 0.9%. Domestic travel and accommodation grew by 13.3% in the fourth quarter of 2022, while international travel costs increased by 7.6%. Electricity price increased by 8.6%.

Higher interest rates have boosted mortgage payments for many Australians, while cooling the property market’s heat.

[Lạm phát ở Nhật Bản lại phá vỡ ngưỡng kỷ lục trong 40 năm qua]

Domain’s housing price report released on January 25 showed Sydney house prices fell 10.9% last year, the steepest decline on record, but still nearly 25% above their lows. 2020.

In Melbourne, house prices have fallen 5.6% from 2022, but are still 17.2% above mid-market lows. New home construction costs rose 1.7% in the fourth quarter. 2022, slower than previous quarters but still well above historical levels.

Higher inflation raises the possibility that the Reserve Bank of Australia will have another rate hike next month.

Thanh Tu (VNA/Vietnam+)

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