Australia: Inflation crosses Reserve's Bank target band in Q1
April 27, 2017
In the first quarter of 2017, consumer prices rose 0.5% over the previous quarter, coming in below market expectations of 0.6% and matching Q4’s print. The Australian Bureau of Statistics said that higher prices for alcohol and tobacco, education, health, and transport more than offset lower prices for clothing and footwear and furnishings, household equipment and services.
Inflation jumped from 1.5% in Q4 to 2.1% in Q1, the highest print since Q3 2014. Inflation crossed above the 2.0%-3.0% target band of the Reserve Bank for the first time in almost three years. Meanwhile, average inflation edged up from 1.3% in Q4 to 1.5% in Q1.
Author: Christopher Mc Innes, Economist