Australia CPI rose 0.6 percent in the fourth quarter

Inflation, as represented by the consumer price index (CPI), rose 0.6 percent quarter-on-quarter (q/q) in the fourth quarter showed the data released by the Australian Bureau of Statistics. Markets were expecting a rise to 0.7 percent.

The annualized figure ticked higher to 1.9 percent year-on-year (y/y), but missed estimates of 2.0 percent. Also, the RBA trimmed mean CPI printed at 0.4 percent q/q and 1.8 percent y/y, missing the estimate of 0.5 percent and 1.9 percent, respectively.

DECEMBER KEY POINTS

THE ALL GROUPS CPI

• rose 0.6% this quarter, compared with a rise of 0.6% in the September quarter 2017.
• rose 1.9% over the twelve months to the December quarter 2017, compared with a rise of 1.8% over the twelve months to the September quarter 2017.

OVERVIEW OF CPI MOVEMENTS

• The most significant price rises this quarter are automotive fuel (+10.4%), tobacco (+8.5%), domestic holiday travel and accommodation (+6.3%) and fruit (+9.3%).
• The most significant offsetting price falls this quarter are international holiday travel and accommodation (-1.7%), audio-visual and computing equipment (-3.5%), and telecommunication equipment and services (-1.4%).