Inflation jumps above economists’ and the Reserve Bank’s expectations

Inflation jumps above economists’ and the Reserve Bank’s expectations

Inflation jumped 1.3% in the September quarter, above economists’ and the Reserve Bank’s own expectations. That is likely to rule out a cut in interest rates next week.

The Australian Bureau of Statistics today released the consumer price index (CPI), showing headline inflation was almost double the 0.7% increase recorded in the June quarter.

Over the year to September, consumer prices climbed 3.2%, a big increase from 2.1% in the previous quarter, and above the top end of the central bank’s target.

The consumer price index was the last major piece of data before the Reserve Bank meeting on Melbourne Cup Day.

The trimmed mean — the Reserve Bank’s preferred measure of underlying inflation — rose 3.0% over the year, only slightly below the headline rate. That suggests price pressures remain broad-based and persistent.

Source: The Conversation https://shorturl.at/B2OcF