Australian Inflation Rose in Last Quarter but still Short of Target

Australian consumer price inflation tiptoed atop 2 percent last quarter for the first time since 2014 as petrol, health care and education got more expensive, a hopeful sign that the danger of deflation had likely passed for this cycle.

Yet, key measures of core inflation stayed stubbornly short of the Reserve Bank of Australia’s (RBA) 2 to 3 percent target band, implying there was scant pressure for a hike in interest rates anytime soon.



“Not a lot in this is going to rock the boat one way or the other,” said Michael Blythe, chief economist at CBA.

“Inflation overall looks well contained, so the RBA will be happy with that. Equally, they’ll be happy that headline inflation is back within the target band.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza