Australia faces the prospect of a pre-election rate rise by the Reserve Bank after underlying inflation pace soared to its highest in 13 years while the broader consumer price measure increased at the quickest pace since the GST was introduced in 2000.
The 5.1% annual consumer price index (CPI) reading for the March quarter easily topped the market expectation of 4.6% pace. The so-called trimmed mean inflation, which strips out volatile changes and is used by the central bank to set rates, rose 3.7%, or the most since March 2009.
