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.”
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