Australian Inflation hits 20-year High, May Rate Rise seen in Play

Australian consumer prices surged at the fastest annual pace in two decades last quarter as petrol, home building and food costs all climbed, fueling speculation interest rates could rise from record lows as soon as next week.

That would be unwelcome news for Prime Minister Scott Morrison as he fights a tough election where the rising cost of living has become a sore point with voters.

The data bolstered a growing view that the Reserve Bank of Australia (RBA) no longer needs to keep interest rates at emergency lows of 0.1% and should tighten soon, perhaps even at its next policy meeting on May 3 rather than in June.