Australia: Inflation hits over two year low in Q4
January 28, 2015
In the last quarter of 2014, consumer prices rose 0.2% over the previous quarter, which was just below the 0.5% rise tallied in Q3. The result was slightly below market expectations of a 0.3% increase. The quarterly figure mainly reflected lower prices for transport, resulting from lower oil prices, as well as for healthcare. Conversely, prices for alcohol and tobacco and recreation and culture were higher than in the previous quarter.
Annual inflation eased significantly from 2.3% in Q3 to 1.7% in Q4, which marked the lowest reading since Q2 2012. Following the marked drop in annual inflation figures, annual average inflation declined from 2.8% in Q3 to 2.5% in Q4, marking the lowest rate that has been seen in a year.
Author: Cecilia Simkievich, Economist