Australian Inflation Cools to Slowest Pace in Decade

Australian inflation cooled to the slowest pace in 10 years, easing pressure on central bank Governor Glenn Stevens to increase the benchmark lending rate by a half point next week.

The consumer price index rose in the third quarter by an annual 1.3 percent, the smallest gain since the second quarter of 1999, after advancing 1.5 percent in the previous three months, the Bureau of Statistics said in Sydney today. Prices gained 1 percent from the second quarter.

Food prices fell 0.8 percent and health costs slipped 1 percent in the third quarter, today’s report showed. By contrast, electricity costs rose 11.4 percent and gasoline advanced 4 percent.

The Reserve Bank’s core inflation measures, which exclude the largest price increases and declines, were also published today.

The weighted-median gauge of inflation advanced 0.8 percent in the third quarter for an annual increase of 3.8 percent.

Australian Inflation Cools to Slowest Pace in Decade, Bloomberg
10/27/2009 11:44:08 PM