Australia: Inflation accelerates for second consecutive quarter
January 23, 2013
In the fourth quarter, consumer prices rose 0.2% over the previous quarter, which was below the 1.4% increase recorded in the third quarter and market expectations of a 0.4% rise. The quarterly reading reflected how higher prices for insurance and financial services as well as for communication more than offset lower prices for healthcare as well as for furnishing and household equipment.
As a result of the quarterly increase, annual inflation picked up from 2.0% in the third quarter to 2.2% in the fourth, marking a second consecutive quarter of accelerating inflation. In contrast, annual average inflation fell from 2.0% in Q3 to 1.8% in Q4, which was broadly in line with FocusEconomics Consensus Forecast's 2.0% projection and marked the lowest level in 14 years.
Author: Armando Ciccarelli, Head of Data Solutions