CANBERRA, April 29 (Xinhua) -- Australia's rate of inflation rose to its highest level in over two years in March as a result of record fuel prices driven by the conflict in the Middle East, the Australian Bureau of Statistics (ABS) said on Wednesday.
According to official data from the ABS, the consumer price index (CPI) rose by 4.6 percent in the year to March, up from 3.7 percent in February and the highest annual rate of headline inflation since September 2023.
The Australian Broadcasting Corporation reported earlier on Wednesday that economists were predicting that CPI growth would hit 4.8 percent in March.
The annual trimmed mean, a measure of underlying inflation, remained at 3.3 percent for the fourth consecutive month in March.
The ABS said that automotive fuel prices were the biggest driver of monthly inflation, rising by 32.8 percent from February to March.
Average prices for regular unleaded fuel rose 33 percent, the ABS said, and diesel prices rose by 41 percent.
Sue-Ellen Luke, head of prices statistics at the ABS, said that it was the largest monthly increase in fuel prices since tracking began in 2017 and that the data reflects the "impact of the conflict in the Middle East."
Treasurer Jim Chalmers said in a speech to an industry event for economists on March 19 that there was a "very real" prospect of Australia's inflation surpassing 5 percent in 2026 as a result of the oil supply crisis caused by the conflict.
The ABS noted that housing costs were 6.5 percent higher in March than 12 months earlier and electricity prices were up 25.4 percent due to the end of government rebate schemes. ■