CPI growth drops
The Consumer Price Index (CPI) growth has petered off according to latest figures released by the Australian Bureau of Statistics (ABS)
The CPI rose 0.6 per cent in the September quarter, down from 0.9 per cent in the previous quarter. Headline inflation is 3.5 per cent through the year, down from 3.6 per cent in the June quarter.
In seasonally adjusted terms, the CPI rose by .04 per cent in the quarter.
Underlying inflation moderated to 0.3 per cent, down from 0.8 per cent in the June quarter. This is the lowest quarterly rate of underlying inflation in well over a decade. In through-the-year terms, underlying inflation in the September quarter fell to 2.5 per cent.
The moderation in headline inflation in the quarter was driven by falls in health prices (down 1.0 per cent) reflecting seasonal declines in the price of pharmaceuticals, a fall in fruit and vegetables prices (down 1.8 per cent) and falls in fuel prices (down 1.4 per cent) reflecting easing world oil prices in the September quarter.
Offsetting the price falls were increases in housing prices, which rose 1.9 per cent, which contributed to around 0.4 percentage points to headline CPI. The figures also show a modest rise in recreation, culture and general retail prices.
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