Asset Allocation Strategy
Australia Joins the High Inflation Club
Mon 2nd May, 2022

Australia’s headline CPI in the first quarter jumped by 2.1% on the previous quarter, well in excess of the consensus expectation of 1.7%. This marks the largest quarterly rise since the GST-driven spike in mid 2000.

Year-on-year inflation also accelerated sharply to 5.1%, the highest since 2001. This was well above the consensus estimate of 4.6% and way above the RBA's Feb-22 forecast of 3.9%.

In this report we cover:

  • Underlying inflation spiking above the RBA’s target band
  • The global context
  • Interest rate forecasts – how fast and how high?
  • Asset market implications from rising cash rates

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Written by

David Cassidy, Head of Investment Strategy

David is one of Australia’s leading investment strategists.

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