Australia: Inflation picks up in Q3
October 24, 2012
In the third quarter, consumer prices rose 1.4% over the previous quarter, which was above both the 0.5% increase recorded in the second quarter and market expectations of a 1.0% increase. The reading was driven by higher prices for housing as well as for healthcare. Moreover, the third quarter reading likely reflects the effects on consumer prices of the carbon-tax scheme in place since July, although the Australian Bureau of Statistics (ABS) stated that it was not able to quantify the overall impact of the measure. As a result of the quarterly increase, annual inflation picked up from 1.2% in the second quarter to 2.0% in the third, reverting the downward trend in place since the second quarter of 2011. In contrast, annual average inflation fell to 2.0% in Q3, down from 2.3% in the previous three-month period and marking its lowest level in more than two years.
Author: Armando Ciccarelli, Head of Data Solutions