Australia: Inflation rises to highest level in five quarters
April 24, 2013
In the first quarter, consumer prices rose 0.4% over the previous quarter, which was above the 0.2% increase recorded in Q4 2012 but below market expectations of a 0.7% rise. The quarterly reading reflected how higher prices for education as well as for healthcare more than offset lower prices for clothing and footwear as well as for furnishings and household equipment.
As a result of the quarterly increase, annual inflation picked up from 2.2% in the fourth quarter to 2.5% in the first, which represents the highest level since Q4 2011. Accordingly, annual average inflation rose from 1.8% in the fourth quarter to 2.0% in the first.
FocusEconomics panellists anticipate inflation averaging 2.7% in 2013, which is unchanged from last month's forecast. For 2014, panellists also see an average inflation of 2.7%.
Author: Armando Ciccarelli, Head of Data Solutions