Australia Inflation Rate Edges Up to 1.9% in Q4
Consumer prices in Australia rose 1.9 percent through the year to the December quarter of 2017, following a 1.8 percent rise in the previous quarter and compared with market consensus of a 2.0 percent rise. Cost of housing and transport increased at faster paces while cost of food fell much less.
Year-on-year, cost went up at a faster rate for: alcohol and tobacco (7.3 percent from 7.0 percent in the September quarter); housing (3.4 percent from 3.3 percent); health (4.0 percent from 3.9 percent); transport (3.3 percent from 2.7 percent) and education (3.2 percent from 3.1 percent). Meantime, cost rose less for insurance and financial services (1.3 percent from 1.8 percent) while inflation was steady for recreation and culture (0.6 percent).
On the other hand, cost fell for: food and non-alcoholic beverages (-0.2 percent from -0.7 percent); clothing and footwear (-3.0 percent from -3.2 percent); furnishing, household equipment and services (-0.8 percent from -0.8 percent) and communication (-3.4 percent from -2.9 percent).
RBA Trimmed Mean CPI rose 1.8 percent year-on-year in the fourth quarter, the same as in the prior quarter and slightly below expectations of a 1.9 percent gain. Quarter-on-quarter, the index increased by 0.4 percent, similar from the June quarter's figure while market estimated a 0.5 percent increase. RBA Weighted Mean CPI rose 2.0 percent year-on-year in the three months to December, compared to a 1.9 percent growth in Q3 and slightly above expectations of a 2.0 percent rise.
On a quarterly basis, consumer prices rose 0.6 percent, the same as in the third while markets estimated a 0.7 percent increase. The most significant price rises this quarter are automotive fuel (10.4 percent), tobacco (8.5 percent), domestic holiday travel and accommodation (6.3 percent) and fruit (9.3 percent). The most significant offsetting price falls were international holiday travel and accommodation (-1.7 percent), audio visual and computing equipment (-3.5 percent), and telecommunication equipment and services (-1.4 percent).
1/31/2018 1:20:05 AM