Australia: Inflation falls to multi-year low in Q2
July 27, 2016
In the second quarter of 2016, consumer prices rose 0.4% over the previous quarter, matching market analysts’ expectations and contrasting Q1’s 0.2% drop. The Australian Bureau of Statistics elaborated that higher prices for health, clothing and footwear, transport as well alcohol and tobacco registered the most significant increases in Q2. These increases were partially offset by lower prices for communication along with food and non-alcoholic beverages.
Inflation came in at 1.0% in Q2, down from 1.3% in Q1, which marked a 17-year low. Meanwhile, annual average inflation inched down from 1.5% in Q1 to 1.4% in Q2, below the Reserve Bank of Australia’s inflation target of 2.0%–3.0%.
Author: Robert Hill, Economist