Australia: Inflation softens in Q2
July 26, 2017
In the second quarter of 2017, consumer prices rose 0.2% over the previous quarter, coming in below market expectations of 0.4% and the first quarter print. The Australian Bureau of Statistics said that higher prices for medical and hospital services, new home purchases and tobacco more than offset lower prices for domestic holiday travel and accommodation and automotive fuel.
Inflation fell from 2.1% in Q1 to 1.9% in Q2. Inflation fell back below the Reserve Bank’s 2.0%–3.0% target band, after having crossed into the target range for the first time in almost three years in Q1. Meanwhile, average inflation edged up from 1.5% in Q1 to 1.7% in Q2.
Author: Christopher Mc Innes, Economist