The release prompted Goldman Sachs chief economist Andrew Boak to revise his forecast for the terminal cash rate higher to 4.35 per cent, up from 4.1 per cent, with back-to-back rate rises predicted in both June and July.
“While part of the upside surprise in headline inflation reflected a strong rebound in volatile holiday travel prices, we view the composition as strong overall given an acceleration in inflation momentum across rents, new housing and several durable goods items,” Mr Boak said.
