Australia Inflation Below Forecasts in Q2

Consumer prices in Australia rose only 1.5 percent through the year to the June quarter 2015 compared to 1.3 percent in the previous period. While cost of transport declined at a slower pace, food and housing inflation was weaker than in the previous period.

Year-on-year, cost increased for: food and non-alcoholic beverages (+1.3 percent from +1.9 percent in the preceding quarter); alcohol and tobacco (+4.8 percent from +5.2 percent); housing (+2.5 percent from +2.7 percent); furnishing, household equipment and services (+1.4 percent from +1.5 percent); health (+4.3 percent from +4.4 percent); recreation and culture (+0.9 percent from +2.0 percent); education (+5.4 percent from +5.4 percent) and insurance and financial services (+2.1 percent from +1.8 percent).

In contrast, prices declined for: transport (-2.4 percent from -6.2 percent in the previous quarter), communication (-3.4 percent from -4.5 percent) and clothing and footwear (-0.9 percent from -0.7 percent). 

Quarter-on-quarter, the consumer price index rose 0.7 percent in the June quarter 2015, accelerating from 0.2 percent in the March quarter. The most significant price rises this quarter were in automotive fuel (+12.2 percent), medical and hospital services (+4.5 percent) and new dwelling purchase by owner–occupiers (+1.5 percent). These rises were partially offset by falls in domestic holiday travel and accommodation (–5.4 percent) and pharmaceutical products (-1.8 percent). The increase in fuel is registered in four of the five fuel types with the quarterly rise the largest since December 1990.

Australia Inflation Below Forecasts in Q2

ABS l Rida Husna l
7/22/2015 5:48:50 PM