What the latest inflation figures mean for interest rates next week

Inflation has risen to 6.1 per cent (up from 5.1 per cent) in the latest figures, a 32-year high, but it’s not as bad as some economists feared.

Stephen Koukoulas is Managing Director of Market Economics and was a former economic adviser to Julia Gillard and told Neil Mitchell he was expecting the figure to be higher.

“While there is still probably an interest rate hiking coming next week from the Reserve Bank, some of the urgency might just be taken away with a slightly lower outcome on the inflation number,” he said.

Press PLAY below to hear his analysis

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