Financial Times FT.com

Inflation blow to Howard's election campaign

By Virginia Marsh in Sydney

Published: October 25 2007 03:00 | Last updated: October 25 2007 03:00

Australian prime minister John Howard's faltering re-election campaign was dealt a further blow yesterday with the release of worse-than-expected inflation figures that make an election-eve interest rate rise a near certainty.

Economists overwhelmingly predicted a rise in Australian rates early next month ahead of the November 24 poll, an embarrassment for a government that won the last election partly by claiming its superior economic management would help keep rates low.

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