Inflation in Australia hits highest level in 2 decades

By Aysu Bicer

ANKARA (AA) - The annual inflation in Australia rose to 5.1% in the first quarter of this year, showing the fastest rise in the last 20 years, according to the latest data from the Australian Bureau of Statistics (ABS).

"The Consumer Price Index (CPI) recorded its largest quarterly and annual rises since the introduction of the goods and services tax," said Michelle Marquardt, the head of Prices Statistics at ABS.

The most significant contributors to the rise were new dwellings (+5.7%), automotive fuel (+11%), and tertiary education (+6.3%).

"Continued shortages of building supplies and labour, heightened freight costs and ongoing strong demand contributed to price rises for newly built dwellings," she added."The CPI's automotive fuel series reached a record level for the third consecutive quarter, with fuel price rises seen across all three months."

Notable rises were also seen across the food group with 2.8% -- reflecting high transport, fertilizer, packaging, and ingredient costs, as well as COVID-related disruptions and herd restocking due to favorable weather.