This week’s economic highlights

• The ABS released CPI data for the March quarter of 2022, revealing high levels of inflation driven by fuel, housing, and education costs. This is the fourth consecutive quarter of annual CPI increases above 3%, and increases pressure on the RBA to raise interest rates in May.
• Australia’s import and export prices both grew rapidly in the March quarter, but with export prices growing at three times the rate of imports. This reflects strong demand for Australian commodities - particularly iron ore, coal and metals - and will further improve Australia’s terms of trade.
• The ABS Business Conditions and Sentiments survey revealed that over half of Australian businesses are facing increasing costs due to inflation, particularly in the hospitality, manufacturing and retail sectors. Almost one in five businesses report they have insufficient staff, reflecting the extremely tight labour market.