Huge spike in inflation could spell big trouble for borrowers
Australia’s inflation rate has surged to 4.6 per cent, driven by fuel and housing costs, which will increase pressure on interest rates and borrowers.
In the month of March, the CPI rose 1.1 per cent in original terms and rose 1.1 per cent in seasonally adjusted terms. (Image source: PX Media/Shutterstock.com)
The first inflation data to emerge since the start of the war in the Middle East has delivered a supercharged shock to the economy, and almost inevitably, to borrowers.
Australia’s Consumer Price Index (CPI) has surged to 4.6 per cent in the 12 months to March 2026, up sharply from 3.7 per cent in February, marking the highest annual inflation reading since September 2023.
The latest CPI figure is the biggest monthly leap in inflation since Sep…
