Australia Inflation Rises More than Expected in Q3
Consumer prices in Australia rose 1.3 percent through the year to the third quarter of 2016 from 1.0 percent in the previous three month period. The inflation rate came above market consensus of a 1.1 driven mostly by rise in cost of food and housing.
Year-on-year, cost increased for: food and non-alcoholic beverages (+1.5 percent from -0.1 percent in the June quarter), alcohol and tobacco (+5.7 percent from +5.9 percent); clothing and footwear (+1.2 percent from -0.2 percent), housing (+1.8 percent from +1.3 percent); furnishing, household equipment and services (+1.9 percent from +1.6 percent), health (+3.9 percent from +4.5 percent), recreation & culture (+0.6 percent from +0.8 percent), education (+3.3 percent from +3.3 percent) and insurance and financial services (+2.9 percent from +2.4 percent). In contrast, cost declined for: transport (-3.4 percent from -2.8 percent) and communication (-7.5 percent from -7.2 percent).
RBA Trimmed Mean CPI rose 1.7 percent year-on-year in the September quarter of 2016, the same pace as in the preceding two quarters and in line with estimates. Quarter-on-quarter, the index increased 0.4 percent, down from 0.5 percent in the second quarter. RBA Weighted Mean CPI rose 1.3 percent year-on-year in the three months to September, unchanged from the second quarter. For 2016, Australia's central bank targets core inflation of between 2.0 percent to 3.0 percent on average.
On a quarterly basis, consumer prices rose 0.7 percent, following a 0.4 percent rise in the previous three month period and above market expectations of 0.5 percent. It was the highest inflation rate since June quarter of 2015 driven by a 1.7 percent rise in cost of food and non-alcoholic beverages. The main contributors to the rise in the food and non-alcoholic beverages group were fruit (+19.5%) and vegetables (+5.9% )as adverse weather conditions, including floods, in major growing areas, impacted supply. Prices also increased for electricity (+5.4 percent) and tobacco (+2.3 percent). Partially offsetting these rises were falls in communication (-2.3 percent) and fuel (-2.9 percent).
10/26/2016 12:58:48 PM