Australia’s inflation rate rose higher than expected in the first quarter of 2024, reaching 3.6% year-on-year. Despite the slight decrease from the previous quarter’s 4.1%, it remained above the Reserve Bank of Australia’s (RBA) target range, increasing the likelihood of continued high interest rates. The elevated inflation, particularly in housing, food, and healthcare, is weighing on households and dampening consumer spending. However, the stickiness of inflation provides impetus for the RBA to maintain higher rates for longer, a trend that could pose challenges for the Australian economy.