Higher US inflation has dashed hopes of a local interest rate cut this year, as economists warn that borrowing costs may need to go higher to offset a “dangerous” policy cocktail of stimulus from green industrial subsidies and income tax cuts.
US consumer price increases accelerated to 3.5 per cent annually in March and core US inflation – which excludes the volatile food and energy categories – was a higher-than-expected 3.8 per cent.
Loading...
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
