Pursuits
Aussie CPI Suffers Yuan Effect as Reflation Bypasses Down Under
- Lower Aussie clothing prices reflects cheap Chinese imports
- Fuel prices among the gains, reflecting OPEC deal on output
HSBC's Bloxham: Inflation Is Steadying in Australia
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Australia’s slower-than-forecast inflation partly reflects the weakness of China’s currency against the local dollar, pushing down the cost of imports like clothing. The upshot: reflation emerging in parts of the developed world remains unseen Down Under.
Reserve Bank of Australia Governor Philip Lowe has signaled a willingness to tolerate weaker price growth to avoid further inflating east coast housing that is already among the world’s dearest. His desire to avoid cutting interest rates further from the current record-low 1.5 percent is being challenged, however, by a third-quarter slump in the economy and recent gains in the jobless rate.