Inflation cooled more than expected in November. But rate cuts remain unlikely anytime soon |
Annual inflation cooled in November.
The latest Australian Bureau of Statistics (ABS) consumer price index (CPI) report, released on Wednesday, shows inflation over the year to November was 3.4%, down from 3.8% a month earlier.
This 3.4% inflation rate was below many economists’ expectations.
The “trimmed mean” measure of underlying inflation, which takes out the items with the most extreme price changes, was 3.2% in November.
This measure is generally a better guide to the ongoing trend in inflation. It was only marginally changed from the 3.3% in October and 3.2% in September.
However, both measures remain above the Reserve Bank of Australia’s (RBA) 2-3% target band.
Housing-related costs rose 5.2%, accounting for 1.1 percentage points of the total 3.4% increase in prices. The increase was particularly high in Queensland (up 12.2% in Brisbane) as the electricity rebate program there ended. The 4% increase in rents also contributed.
Meat prices also rose, with beef and veal prices up 11.4% and lamb and goat up 12.3%. The ABS attributed this to strong overseas demand for Australian red meat.
A lower global supply of coffee beans pushed up the price of coffee, tea and cocoa (grouped together by the ABS) by 15.3%. Among other large price rises were tobacco (up........