{"id":5336,"date":"2023-03-29T18:40:47","date_gmt":"2023-03-29T18:40:47","guid":{"rendered":"https:\/\/londonpost.news\/?p=5336"},"modified":"2023-03-29T20:32:05","modified_gmt":"2023-03-29T20:32:05","slug":"inflation-is-slowing-ahead-of-a-critical-rate-decision-in-australia","status":"publish","type":"post","link":"https:\/\/brusselsindependent.com\/en\/asia\/asia-pacific\/australian-news\/inflation-is-slowing-ahead-of-a-critical-rate-decision-in-australia\/2023\/03\/29\/admin1\/","title":{"rendered":"Inflation is slowing ahead of a critical rate decision in Australia"},"content":{"rendered":"

CANBERRA (Brussels Independent with AAP) By Dr Majid Khan -Inflation<\/span> has<\/span> fallen<\/span> for<\/span> a<\/span> second<\/span> month<\/span> in<\/span> a<\/span> row,<\/span> increasing<\/span> the<\/span> chances<\/span> of<\/span> a<\/span> moratorium<\/span> on<\/span> interest<\/span> rates<\/span> at<\/span> next<\/span> week’s<\/span> Reserve<\/span> Bank<\/span> meeting.<\/span>
\n<\/span>
\n<\/span>Consumer<\/span> prices<\/span> rose<\/span> 6.8%<\/span> in<\/span> his<\/span> 12<\/span> months<\/span> to<\/span> February,<\/span> down<\/span> from<\/span> 7.4%<\/span> annual<\/span> growth<\/span> in<\/span> January.<\/span>
\n<\/span>
\n<\/span>A<\/span> further<\/span> slowdown<\/span> in<\/span> the<\/span> Australian<\/span> Bureau<\/span> of<\/span> Statistics<\/span> monthly<\/span> consumer<\/span> price<\/span> index<\/span> had<\/span> been<\/span> expected,<\/span> but<\/span> the<\/span> slowdown<\/span> was<\/span> more<\/span> severe<\/span> than<\/span> expected,<\/span> with<\/span> consensus<\/span> forecasts<\/span> for<\/span> a<\/span> 7.2%<\/span> rise<\/span> in<\/span> the<\/span> year<\/span> to<\/span> February.<\/span>
\n<\/span>
\n<\/span>Housing<\/span> was<\/span> the<\/span> biggest<\/span> driver<\/span> of<\/span> annual<\/span> inflation,<\/span> but<\/span> annual<\/span> growth<\/span> slowed<\/span> to<\/span> 9.9%<\/span> from<\/span> 10.4%<\/span> in<\/span> January.<\/span>
\n<\/span>
\n<\/span>Other<\/span> key<\/span> ABS-hit<\/span> annual<\/span> growth<\/span> drivers<\/span> \u2013<\/span> food<\/span> and<\/span> non-alcoholic<\/span> beverages<\/span> and<\/span> transport<\/span> and<\/span> leisure<\/span> \u2013<\/span> also<\/span> weakened<\/span> in<\/span> the<\/span> month<\/span> but<\/span> remained<\/span> elevated.<\/span> However,<\/span> rental<\/span> prices<\/span> remained<\/span> stable<\/span> for<\/span> the<\/span> second<\/span> month<\/span> in<\/span> a<\/span> row,<\/span> growing<\/span> by<\/span> 4.8%<\/span> annually,<\/span> with<\/span> a<\/span> tight<\/span> rental<\/span> market<\/span> and<\/span> low<\/span> vacancy<\/span> rates<\/span> weighing<\/span> on<\/span> rents.<\/span>
\n<\/span>
\n<\/span>Leisure<\/span> travel<\/span> and<\/span> accommodation<\/span> also<\/span> fell<\/span> more<\/span> than<\/span> expected<\/span> in<\/span> February,<\/span> down<\/span> 14.9%<\/span> from<\/span> 17.8%<\/span> in<\/span> January.<\/span>
\n<\/span>
\n<\/span>Michelle<\/span> Marquardt,<\/span> head<\/span> of<\/span> pricing<\/span> statistics<\/span> at<\/span> ABS,<\/span> said<\/span> the<\/span> sharp<\/span> reversal<\/span> in<\/span> holiday-related<\/span> prices<\/span> was<\/span> due<\/span> to<\/span> strong<\/span> demand<\/span> for<\/span> domestic<\/span> and<\/span> international<\/span> fares<\/span> leading<\/span> up<\/span> to<\/span> Christmas<\/span> and<\/span> during<\/span> the<\/span> school<\/span> holidays.<\/span>\u00a0
\n<\/span>
\n<\/span>Chancellor<\/span> Jim<\/span> Chalmers<\/span> welcomed<\/span> the<\/span> “6<\/span> in<\/span> front<\/span> of<\/span> the<\/span> numbers”<\/span> but<\/span> said<\/span> inflation<\/span> was<\/span> still<\/span> unacceptably<\/span> high<\/span> and<\/span> well<\/span> above<\/span> the<\/span> RBA’s<\/span> target<\/span> range<\/span> of<\/span> 2-3%.<\/span>
\n<\/span>
\n<\/span>\u201cInflation<\/span> peaked<\/span> late<\/span> last<\/span> year<\/span> and<\/span> has<\/span> moderated<\/span> this<\/span> year,<\/span> further<\/span> evidence,<\/span> but<\/span> it<\/span> will<\/span> rise<\/span> longer<\/span> than<\/span> we<\/span> would<\/span> like,\u201d<\/span> he<\/span> told<\/span> parliament<\/span> on<\/span> Wednesday.<\/span> The<\/span> monthly<\/span> CPI<\/span> reading,<\/span> which<\/span> provides<\/span> a<\/span> more<\/span> recent<\/span> but<\/span> less<\/span> complete<\/span> picture<\/span> of<\/span> consumer<\/span> price<\/span> movements<\/span> compared<\/span> to<\/span> the<\/span> quarterly<\/span> index,<\/span> is<\/span> on<\/span> the<\/span> RBA’s<\/span> watchlist<\/span> ahead<\/span> of<\/span> the<\/span> April<\/span> cash<\/span> rate<\/span> decision.<\/span>\u00a0
\n<\/span>
\n<\/span>Central<\/span> banks<\/span> are<\/span> creating<\/span> room<\/span> for<\/span> a<\/span> pause<\/span> or<\/span> recovery,<\/span> depending<\/span> on<\/span> incoming<\/span> data<\/span> flows,<\/span> and<\/span> economists<\/span> are<\/span> divided<\/span> on<\/span> which<\/span> way<\/span> it<\/span> will<\/span> fall.<\/span>
\n<\/span>
\n<\/span>Data<\/span> have<\/span> been<\/span> mixed<\/span> since<\/span> the<\/span> March<\/span> rate<\/span> hike,<\/span> with<\/span> weak<\/span> inflation<\/span> and<\/span> retail<\/span> sales<\/span> data<\/span> suggesting<\/span> the<\/span> economy<\/span> is<\/span> losing<\/span> momentum,<\/span> but<\/span> strong<\/span> employment<\/span> and<\/span> business<\/span> conditions<\/span> indicate<\/span> continued<\/span> resilience.<\/span>\u00a0
\n<\/span>
\n<\/span>KPMG<\/span> chief<\/span> economist<\/span> Brendan<\/span> Lin<\/span> said<\/span> the<\/span> RBA<\/span> is<\/span> likely<\/span> to<\/span> follow<\/span> other<\/span> central<\/span> banks<\/span> in<\/span> raising<\/span> rates.<\/span>
\n<\/span>
\n<\/span>“Today’s<\/span> data<\/span> will<\/span> give<\/span> the<\/span> RBA<\/span> something<\/span> to<\/span> consider,<\/span> but<\/span> KPMG<\/span> thinks<\/span> inflation<\/span> is<\/span> still<\/span> high<\/span> enough<\/span> and<\/span> jobs<\/span> too<\/span> strong<\/span> for<\/span> the<\/span> RBA<\/span> to<\/span> stop<\/span> raising<\/span> rates.<\/span> Rinne.<\/span> He<\/span> said<\/span> Australia<\/span> appeared<\/span> to<\/span> be<\/span> on<\/span> the<\/span> same<\/span> trajectory<\/span> as<\/span> its<\/span> global<\/span> peers<\/span> in<\/span> the<\/span> fight<\/span> against<\/span> inflation,<\/span> with<\/span> price<\/span> growth<\/span> appearing<\/span> to<\/span> have<\/span> peaked,<\/span> but<\/span> a<\/span> tough<\/span> economic<\/span> environment<\/span> spurred<\/span> concerns<\/span> of<\/span> stubbornly<\/span> high<\/span> core<\/span> inflation.<\/span>
\n<\/span>
\n<\/span>Diana<\/span> Musina,<\/span> senior<\/span> economist<\/span> at<\/span> AMP<\/span> Capital,<\/span> said<\/span> the<\/span> monthly<\/span> inflation<\/span> report<\/span> and<\/span> other<\/span> key<\/span> data<\/span> sources<\/span> should<\/span> be<\/span> enough<\/span> to<\/span> persuade<\/span> the<\/span> RBA<\/span> to<\/span> step<\/span> down<\/span> next<\/span> week.<\/span>
\n<\/span>
\n<\/span>She<\/span> also<\/span> said<\/span> the<\/span> US<\/span> and<\/span> European<\/span> banking<\/span> crises<\/span> \u2013<\/span> partly<\/span> due<\/span> to<\/span> rising<\/span> interest<\/span> rates<\/span> \u2013<\/span> will<\/span> also<\/span> weigh<\/span> on<\/span> board<\/span> decisions.<\/span>
\n<\/span>
\n<\/span>The<\/span> company’s<\/span> economists<\/span> expect<\/span> him<\/span> to<\/span> pause<\/span> at<\/span> the<\/span> RBA<\/span> meeting<\/span> next<\/span> Tuesday,<\/span> followed<\/span> by<\/span> a<\/span> rate<\/span> cut<\/span> later<\/span> in<\/span> the<\/span> year.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

CANBERRA (Brussels Independent with AAP) By Dr Majid Khan -Inflation has fallen for a second month in a row, increasing the chances of a moratorium on interest rates at next week’s Reserve Bank meeting. Consumer prices rose 6.8% in his 12 months to February, down from 7.4% annual growth in January. A further slowdown in […]<\/p>\n","protected":false},"author":2,"featured_media":5337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":""},"categories":[1566,1766,2403],"tags":[2925,2941,2926,2927,2928,2929,2930,2931,2932,2933,2934,2935,2936,2937,709,2938,1574,2939,1613,2940],"jetpack_featured_media_url":"https:\/\/brusselsindependent.com\/wp-content\/uploads\/2023\/03\/f23119bf-2099-4454-8d4c-aacb4f12f1e0.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/posts\/5336"}],"collection":[{"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/comments?post=5336"}],"version-history":[{"count":4,"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/posts\/5336\/revisions"}],"predecessor-version":[{"id":5348,"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/posts\/5336\/revisions\/5348"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/media\/5337"}],"wp:attachment":[{"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/media?parent=5336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/categories?post=5336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brusselsindependent.com\/en\/wp-json\/wp\/v2\/tags?post=5336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}