SYDNEY (Reuters) – Australia’s consumer price inflation rate fell to its lowest since early 2021 in the third quarter on government rebates on electricity and a drop in gasoline, while a drop in core inflation supported the case for an eventual cut in interest rates.
Data from the Australian Bureau of Statistics on Wednesday showed the consumer price index (CPI) rose 0.2% in the third quarter, under forecasts of a 0.3% increase. Annual inflation dropped to 2.8%, from 3.8%, taking it back into the Reserve Bank of Australia’s (RBA) 2%-3% target band for the first time since late 2021.
The RBA is more focused on core inflation and the trimmed mean measure increased by 0.8% in the quarter, just above forecasts of a 0.7% gain. The annual pace slowed to 3.5% from 4.0%, with service-sector inflation still elevated.
(Reporting by Wayne Cole; Editing by Christian Schmollinger)
