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The Guardian - AU

Business

Paul Karp

Australia’s annual inflation hits 7.8% driven partly by surging electricity prices

Inflation Electricity Australia RBA

Supermarket fruit section — The 7.8% annual rise marks the highest inflation since 1990. Photograph: Martin Keep/Getty Images for Coles

Inflation in Australia reached 7.8% in the year to December, in what economists and the federal government hope will be the peak for runaway prices.

The consumer price index rose by 1.9% in the December quarter, the Australian Bureau of Statistics revealed on Wednesday, driven by surging electricity prices and the cost of holiday travel and accommodation.

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