Inflation Indicator Slows in Australia in September
While Australia's inflation indicator recorded a slowdown on a monthly basis in September, annual inflation maintained its level at 4.8% and continued to remain above the central bank's target.
The inflation indicator announced in September in Australia pointed to a slowdown on a monthly basis, while coming in at 4.8% annually, maintaining the August level and continuing to stay above the target.
Details of September Data and Monthly Trend
The September data indicated that price pressures eased somewhat on a monthly basis in the country. The Melbourne Institute indicator provides a monthly measurement of the inflation trend for markets and policymakers.
The Melbourne Institute's September data stated that monthly inflation rose for the third consecutive month, with transportation prices standing out in this increase.
Annual Inflation Continues to Remain Above Target
The general level of inflation in Australia continues to remain high. In the Melbourne Institute's September indicator, annual inflation was calculated as 4.8%, which remained the same as in August.
Despite the slowdown in the monthly data, the annual indicator for September shows that price increases are still progressing strongly.
Official Consumer Price Index and Central Bank Targets
The Australian Bureau of Statistics' official consumer price index for August had also revealed that annual inflation rose to 4%.
Annual CPI, which was 3.5% in July, rose to 4% in August, remaining above the Reserve Bank of Australia's target range of 2% to 3%.
Risks Complicating the Inflation Outlook
Upside risks to the inflation outlook also continue to persist. Weak productivity growth limits the economy's potential output.
Uncertainties regarding the impact of developments in the housing market on economic activity are also among the factors complicating the general economic outlook.