Australia: Inflation remains below expectations in the third quarter
October 28, 2010
In the third quarter, consumer prices added 0.7%. The reading inched up from the 0.6% increase recorded in the previous quarter and undershot market expectations, which had seen prices adding 0.9%. Higher prices for alcoholic beverages and tobacco as well as for housing were the main drivers behind the reading. Despite the quarterly increase, annual headline inflation fell from 3.1% in the second quarter to 2.8%. That said, annual average inflation stepped up from 2.3% to 2.7%, marking the fourth consecutive quarter of rising inflation. Monetary authorities currently expect inflation to reach 3.25% and maintain a medium-term annual average inflation target range of 2.0% to 3.0%.
Author: Armando Ciccarelli, Head of Data Solutions