Inflation & Prices
Australia’s Elevated Inflation Backs Tight RBA Policy Stance
- Services inflation accelerated in concern for central bank
- Headline prices pulled down by government energy rebates
This article is for subscribers only.
Australia’s core inflation remained elevated last quarter, reinforcing the Reserve Bank’s view that price pressures will take time to dissipate and that monetary policy needs to stay restrictive for the time being.
The trimmed mean measure of consumer prices, which smooths out volatile items, rose 0.8% in the three months through September, matching estimates, data from the Australian Bureau of Statistics showed Wednesday. On an annual basis, the trimmed mean climbed 3.5%, also in line with forecasts. The RBA is focused on core CPI as government subsidies are suppressing headline prices.