Rising Inflation in Australia and Canada Alters Interest Rate Outlooks

Unexpected inflation surges in both countries challenge central banks' rate cut plans, sparking economic debates.

Australia's inflation rate climbed to 4% in May, exceeding expectations and raising the likelihood of an RBA rate hike.
The Australian dollar and bond yields surged as traders anticipated potential rate increases.
Canada's inflation rate increased to 2.9% in May, casting doubt on a July rate cut by the Bank of Canada.
Economists express concerns over core inflation measures and their impact on future monetary policy.
Central banks in both countries face pressure to balance inflation control with economic growth.