I listened to the article today on the ABC. The last quarter inflation rate is 4% per annum due almost exclusively to extraordinary items, including an 11% increase in fuel (and the flow on effect) and increase in fresh fruit and vegetables (particularly tropical fruit).
However, the "underlying inflation rate" is still 3% odd.
It seems inevitable the RBA will increase interest rates 0.25% next week.
Of greater concern is the looming housing crisis and resultant social issues almost across Australia and the increase (or is it decrease?) in "home affordability" (purchase or rent) if interest rates rise any further. Returns on Queensland urban home rentals is current around 4% per annum only, which will drive investors away from rental properties and cause significant upwards pressure on rents.
Sunny Woomera