In the second quarter, consumer prices rose 0.5% over the previous quarter, which was above the 0.1% increase recorded in the first quarter but below market expectations of a 0.6% increase. Higher prices for clothing and footwear, furnishings and household equipment as well as for healthcare were only partially offset by lower prices for recreation and culture as well as for communication. Despite the quarterly increase, annual headline inflation plunged from 1.6% in the first quarter to 1.2% in the second, which represents the lowest reading since the second quarter of 1999. As a result, annual average inflation fell to 2.3% in Q2, down from 2.9% in the previous three-month period and marking its lowest level in two years. The Reserve Bank of Australia (RBA) sees inflation ending this year at 3.25%. The RBA maintains a medium-term annual average inflation target of 2.0% - 3.0%.
Inflation drops to lowest level in 13 years
August 16, 2012
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Australia Inflation Chart
Note: Year-on-year and quarter-on-quarter variation of consumer price index in %.
Source: Australian Bureau of Statistics.
Australia Economic News
October 12, 2016
The Westpac-Melbourne Institute Survey of Consumer Sentiment increased 1.1% in October as the index rose from September’s 101.4 to 102.4.
October 11, 2016
The business confidence index published by the National Australia Bank (NAB) was stable in September at August’s 6 points.
October 5, 2016
Nominal retail sales inched up 0.4% in August from the previous month in seasonally-adjusted terms, up from July’s flat reading.
October 4, 2016
At its 4 October monetary policy meeting, the Reserve Bank of Australia (RBA) kept its policy rate steady at an all-time low of 1.50% after cutting its rate by 25 basis points twice this year, once in May and once in August.
September 15, 2016
The labor market lost 3,900 net new jobs in August compared to the previous month in seasonally-adjusted terms.