Invest
Underlying inflation reaches RBA target
Underlying inflation has reached 2.1 per cent, within the target range of 2 to 3 per cent set by the RBA.
Underlying inflation reaches RBA target
Underlying inflation has reached 2.1 per cent, within the target range of 2 to 3 per cent set by the RBA.
The Australian Bureau of Statistics has reported a 2.1 per cent lift in underlying inflation compared with a year earlier, up from 1.6 per cent in the previous quarter and bringing the measure within the Reserve Bank of Australia’s target range of 2 to 3 per cent.
The underlying inflation figure was above earlier economist forecasts of 1.8 per cent.
Headline inflation rose 3.0 per cent compared with a year ago after a lift of 0.8 per cent during the September quarter. The quarterly rise was in line with forecasts from economists, however the annual rise was 0.1 percentage point lower than anticipated.
The latest consumer price index figures followed a 3.8 per cent rise in the June quarter.
ABS head of prices statistics Michelle Marquardt said fuel prices (up 7.1 per cent) and new dwellings (up 3.3 per cent) experienced the biggest price lift during the September quarter.
“Construction input costs such as timber increased due to supply disruptions and shortages. Combined with high levels of building activity, this saw price increases passed through to consumers,” Ms Marquardt said.
“Rising fuel prices also contributed to the September quarter CPI increase, with the CPI's automotive fuel series reaching the highest level in its half-century history.”
Fuel prices were a key contributor to the annual inflation rise after moving up 36 per cent from the lows reached mid last year, according to Ms Marquardt.
The ABS also recorded an 8.3 per cent fall in fruit prices and a 5.5 per cent drop in clothing prices.
Last week, AMP Capital chief economist Dr Shane Oliver said that he anticipates the RBA will raise rates in 2023 even though the market was already pricing in a rate hike for next year.
“The RBA remains of the view that they’re not going to raise rates until they’re confident that inflation is going to stay in the target zone,” Dr Oliver said.
“Having a spike above it, which is seen as temporary, surely won’t do it for them. They’re particularly looking for a strong labour market to give sustained wages growth of 3 per cent or more.”
The RBA reiterated in its latest meeting minutes that it does not expect actual inflation to remain “sustainably within the 2 to 3 per cent target range” until 2024 or later.
RELATED ARTICLES
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
