Australia Inflation Accelerates to 32-Year High, Official Data Shows

Australia’s annual headline inflation accelerated to a 32-year high in the third quarter, official data shows on Wednesday, lending support to the Reserve Bank’s quick policy tightening and driving up government bond yields.

Statistics from the Australian Bureau of Statistics show that annual inflation in Australia rose to 7.3% in the three months through September from a year earlier. That’s the fastest rate since December 1990, according to Eikon data.

Prices increased 6.1% in the second quarter, and analysts polled by Reuters expected prices to rise 7% this quarter.

“The past four quarters have seen strong quarterly rises off the back of higher prices for new dwelling construction, automotive fuel and food,” the Australian Bureau of Statistics said in its statement.

The consumer price index rose 1.8% in a quarter, exceeding the 1.6% increase predicted by a Reuters poll.