Inflation in September ratchets up to 4.7%

HOPES that inflation had peaked and was on its way down were dashed yesterday, after prices rose faster than expected last month.

Inflation surged to 4.7 per cent in September compared with a year ago, reversing two months of falling inflation, leading some economists to predict an extended period of persistently high inflationary pressures. Inflation was 3.9 per cent in August.

In what has been a familiar story for inflation over the past 18 months, private road transport and housing were again the main culprits driving the pace of rising prices.

Private road transport rose 10.8 per cent last month, up from 6.3 per cent in August, partly due to the limited suppply of Certificates of Entitlement.