And...inflation
Headline inflation jumped 2.1 per cent in the March quarter, taking the annual increase to 5.1 per cent.
Dwelling construction costs were up, and fuel prices were up a lot (+11 per cent).
Construction costs saw the biggest jump since the introduction of the GST, due to a combination of a shortage of materials, ongoing elevated demand, and a reduction in government construction grants.
The underlying inflation measures increased by 1 per cent (weighted median) and 1.4 per cent (trimmed mean) respectively, taking the analytical measures to above the target band for the first time in many a year.
It's easy to forget that headline consumer prices initially fell during the Q2 2020 shutdown, but that seems like quite a while ago now.
In any event, partly as a result of recent supply chain disruptions and warfare in Ukraine, as well as the successful fiscal stimulus, we now have some price inflation!
Fuel prices should hopefully revert a little lower next quarter, but there is an increasing clamour for the Reserve Bank to lift interest rates either in June, or even by a token 15 basis points as soon as next week.
I'm blogging a bit on the hoof here at Sydney Airport - and there are more detailed thoughts to be considered here in terms of the potential impacts of all this - but in the meantime you can get the detailed rundown as always from James Foster here.
