Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Australia monthly CPI measure slows slightly to 6.8% y/y in August

Economy Sep 28, 2022 10:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A man smokes next to the Reserve Bank of Australia headquarters in central Sydney, Australia February 6, 2018. REUTERS/Daniel Munoz

By Wayne Cole

SYDNEY (Reuters) - A new monthly measure of Australian consumer prices on Thursday showed annual inflation eased slightly in August from July thanks to a steep drop in petrol prices, offering hope cost of living pressures might be close to a peak.

The data come before the Reserve Bank of Australia's (RBA) policy Board meeting next week, where markets are wagering it will hike interest rates by 50 basis points to a nine-year high of 2.85%.

The Australian Bureau of Statistics (ABS) reported its monthly indicator of consumer prices (CPI) rose 6.8% in August from a year earlier. That was down from 7.0% in July and a return to June's 6.8% level.

Graphic: Australia monthly CPI measure slows slightly Australia monthly CPI measure slows slightly https://graphics.reuters.com/AUSTRALIA-ECONOMY/INFLATION/mypmndozavr/chart.png

Still, it was higher than the standard quarterly CPI release which showed inflation running at 6.1% in the June quarter, implying the September quarter would likely show a pick up.

The monthly readings can differ sharply from quarterly figures which average CPI over the three months.

"The slight fall in the annual inflation rate from July to August was mainly due to a decrease in prices for automotive fuel," said David Gruen, the Australian Statistician. "This saw the annual movement for automotive fuel fall from 43.3% in June to 15.0% in August."

In contrast, annual inflation for fruit and vegetables more than doubled to 18.6% in August as flooding hit the farm sector.

Utility prices have also been rising but are only included in the quarterly CPI release.

This is only the second release of the monthly CPI indicator, with the September data due in late October and then at roughly four-week intervals.

The monthly CPI only has around two thirds of the price observations of the quarterly series and is more volatile, somewhat limiting its usefulness.

It is also not yet seasonally adjusted and does not include measures of core inflation favoured by the RBA.

Asked about the new indicator recently, RBA Deputy Governor Michele Bullock said it would contain a lot of statistical noise and was unlikely to affect the Board's policy decision at the October meeting.

A spike in inflation this year has led the central bank to lift rates by a steep 225 basis points, and markets are pricing in further moves toward 4.35%.

Australia monthly CPI measure slows slightly to 6.8% y/y in August
 

Related Articles

U.S. house annual prices slow again in September
U.S. house annual prices slow again in September By Reuters - Nov 29, 2022 1

WASHINGTON (Reuters) - U.S. single-family home prices slowed further in September as higher mortgage rates eroded demand, closely watched surveys showed on Tuesday. The S&P...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email