Latest CPI shows inflation in Australia continue to moderate: Treasurer

13:24, October 27, 2010      

Email | Print | Subscribe | Comments | Forum 

Australian Federal Treasurer Wayne Swan on Wednesday said the latest consumer price index (CPI) figures show inflation is continuing to moderate.

According to the Australian Bureau of Statistics (ABS) released on Wednesday, Australia's headline CPI rose 0.7 percent in the September quarter, for an annual rate of 2.8 percent.

The figures were less than economists had predicted.

Meanwhile, underlying inflation, which is at 2.4 percent, had returned to around the middle of the Reserve Bank's preferred target band. This is the lowest underlying inflation rate in five years.

"Today's inflation figures show that both CPI inflation and underlying inflation in Australia have continued to moderate," Swan told reporters in Canberra on Wednesday.

Meanwhile, the rising Australian dollar was helping to moderate price pressures, at the same time make it harder for some businesses in trade-exposed sectors, Swan said.

The treasurer acknowledged the latest data showed many Australians were still doing it tough, especially with higher utility bills to put further pressures on family budgets.

It was why the government was moving to build capacity by investing in infrastructure and cutting business taxes, Swan said.

Meanwhile, ABC News on Wednesday said analysts expected that the latest CPI figures will remove some urgency for the Reserve Bank to lift rates next month.

However, there is almost certainly to be another string of rate rises at some point over the next year, even if borrowers escape any additional mortgage pain before Christmas.

The Australian dollar plunged almost a cent in less than half an hour after the data came out, from about 98.6 to 97.7 U.S. cents at 12:09 p.m. (AEDT).

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion