Australia: Inflation rises to highest level in more than two years
July 27, 2011
In the second quarter, consumer prices added 0.9% over Q1. The price increase was below the 1.6% rise recorded in the previous quarter but overshot market expectations, which had seen prices adding 0.7%. The main drivers behind the quarterly increase were higher prices for clothing and footwear (+2.5% quarter-on-quarter) and for healthcare (+2.0% qoq). Annual headline inflation rose from 3.3% in the first quarter to 3.6%, the highest level since Q4 2008. As a consequence, annual average inflation inched up from 3.0% in the first quarter to 3.1% in the second. Monetary authorities currently expect inflation to end the year at 3.25% and maintain a medium-term annual average inflation target of 2.0% - 3.0%.
Author: Armando Ciccarelli, Head of Data Solutions