Australia’s inflation subdued in Q2

In BICSI Bytes by info@bicsi.com.au

According to the latest Australian Bureau of Statistics (ABS) figures, Australia’s Consumer Price Index (CPI) rose 0.2% in Q2 2017, which follows a 0.5% rise in Q1 2017.

The most significant price rises for the quarter were medical and hospital services (+4.1%), new dwelling purchase by owner-occupiers (+0.9%) and tobacco (+1.0%). These rises are partially offset by falls in domestic holiday travel and accommodation (-3.2%) and automotive fuel (-2.5%).

The CPI rose 1.9% through the year to Q2 2017, having increased to 2.1% in Q1 2017.

Chief Economist for the ABS, Bruce Hockman, said: “Inflation in Australia remains low. Price falls for automotive fuel; and ongoing competition in the clothing and food retail markets has contributed to this quarter’s result.”