Australia: Inflation accelerates in Q1
April 27, 2011
In the first quarter of 2011, consumer prices added 1.6% over the fourth quarter. The price rise was above the 0.4% increase recorded in the previous quarter and marked the highest quarterly increase since Q2 2006, while also beating market expectations of a 1.2% increase. The main drivers behind the quarterly increase were prices for healthcare (+3.9% quarter-on-quarter) and for food (+2.9% qoq), in addition to a pick-up in prices for transport (+2.7 qoq), reflecting the impact of rising oil prices. As a result of the quarterly increase, headline inflation jumped from 2.7% in the fourth quarter to 3.3% and annual average inflation stepped up from 2.8% to 3.0%. Monetary authorities currently expect inflation to end the year at 3.25% and maintain a medium-term annual average inflation target of 2.0% - 3.0%.
Author: Armando Ciccarelli, Head of Data Solutions