Hot inflation builds case for election rate hike

Pressure on RBA to raise interest ahead of May 21 poll

SYDNEY: Australia’s core inflation accelerated to the fastest pace since 2009, prompting traders to price in an interest-rate increase at Tuesday’s central bank meeting that’s being held just weeks out from an election.

The annual trimmed mean gauge that smooths more volatile items breached the upper end of the Reserve Bank of Australia’s (RBA) target to hit 3.7%, official government data showed.