Inflation rate hits 3%

THE inflation rate hit 3% on Wednesday, the highest level preferred by the Reserve Bank, before it would consider taking further action on monetary policy.

Figures from the ABS showed the consumer price index rose to 3%, despite the RBA's latest outlook showing it would not likely change the cash rate, sitting at 2.5%.

The data showed a 0.5% increase in inflation in the June quarter, after a 0.6% rise in the March quarter this year, on the back of rallying consumer activity.


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