ASX growth shares could get hammered soon

Inflation in Australia is on the way up, which could have dire consequences for growth shares.

The Australian Bureau of Statistics on Wednesday revealed the consumer price index (CPI) rose 0.9% in the December quarter.

This meant the annual inflation rate has now been dragged up from 0.7% to 0.9%.

“The December quarter CPI was primarily impacted by an increase in tobacco excise and the introduction, continuation and conclusion of a number of government schemes, including child care fee subsidies and home building grants,” said ABS head of prices statistics Michelle Marquardt.

Tobacco prices went up 10.9% and child care a whopping 37.7%. Domestic holiday travel costs also headed up 6.3% as state borders opened up for a while.

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