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 dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
Economy
Inflation dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
