Australia: Inflation inches down in Q2

In the second quarter, consumer prices rose 0.4% over the previous quarter, which mirrored the result recorded in Q1 2013 and was below market expectations of a 0.5% rise. The quarterly price increase reflected how higher prices for clothing and footwear, as well as for healthcare, more than offset lower prices for transport along with recreation and culture.

As a result of the quarterly increase, annual inflation inched down from 2.5% in the first quarter to 2.4% in the second. Despite a lower annual reading, annual average inflation rose to 2.3% in the second quarter, up from 2.0% in the first.

FocusEconomics panellists expect that inflation will average 2.6% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, panellists also see an average inflation of 2.7%.