Australia’s core consumer prices gained more than economists forecast last quarter, easing pressure on the central bank to reduce interest rates further. The Australian dollar jumped.
The trimmed mean gauge of core prices rose 0.7 percent from the previous quarter, the Bureau of Statistics said in Sydney today, compared with the median forecast of 23 economists for a 0.5 percent gain. The consumer price index advanced 0.2 percent from the previous three months, compared with economists’ forecast for a 0.3 percent increase.
The currency rose as investors pared bets Reserve Bank of Australia Governor Glenn Stevens will reduce the record-low 2.5 percent benchmark rate in the near term. The central bank is trying to reinvigorate domestic industries to spur hiring as it aims to steer a transition in the economy and extend more than 23 years of growth.