Australia: Inflation eases in third quarter
October 28, 2011
In the third quarter, consumer prices added 0.6%, which was below the 0.9% rise recorded in the previous quarter but matched market expectations. The main drivers behind the quarterly increase were higher prices for housing (+1.9% quarter-on-quarter), as well as for clothing and footwear (+1.5% qoq). Annual headline inflation inched down from 3.6% in the second quarter to 3.5%. Despite the moderation in the annual figures, annual average inflation inched up from 3.1% in the second quarter to 3.3% in the third. In its November Statement on Monetary Policy, the Reserve Bank of Australia (RBA) sees inflation ending this year and next at 3.25%. In addition, the RBA maintains a medium-term annual average inflation target of 2.0% - 3.0%.
Author: Armando Ciccarelli, Head of Data Solutions