The Australian dollar climbed to fresh highs on Wednesday after the ABS revealed the consumer price index rose at the quickest pace in five years during the March quarter.
The consumer price index (all groups) grew 1.6% sequentially – a quarterly growth rate unrivaled in the March quarter since 2006, the ABS revealed.
The most significant price rises were for automotive fuel (up 8.8%), fruit and vegetables (up a respective 14.5% and 16%) and pharmaceuticals (up 12.5%).
By contrast prices for furniture fell 6.2%, audio, visual and computing equipment fell by 7.2% and milk by 6.2%.
The prices for overseas holiday travel and motor vehicles also fell modestly.
The Australian dollar reached a new record of US$1.0853 on Thursday, before falling back to $1.0819 by the closing time for local markets.