RTTNews - Australia's consumer prices rose at a slower yearly pace in the three months ended June, the Australian Bureau of Statistics said Wednesday. However, on a quarterly basis, consumer prices climbed at a faster pace from the previous quarter.
The consumer price index climbed 1.5% year-on-year in the second quarter, slower than the 2.5% rise in the first quarter, but the inflation rate was in line with economists' estimates.
Housing as also those for health showed the fastest rise in prices in the three months ended June, climbing 5.2% on a yearly basis. This was followed by a 5.1% rise in the education prices and a 4.8% rise in food prices.
However, consumer prices dropped 5.9% in transportation and 6.6% for financial and insurance services.
Excluding housing and financial and insurance services, the consumer price index climbed 1.4% in the second quarter.
Month-on-month, consumer prices were up 0.5% in the second quarter, also in line with economists' expectations, but faster than a 0.1% rise in the first quarter. Excluding housing and financial and insurance services, consumer prices were up 0.7%.
The most significant rise on a quarterly basis was a 3.6% increase each in automotive fuel and hospital and medical services, a 1.4% increase in rent, a 3.7% rise in furniture prices and a 0.8% increase in house purchase.
At the same time, the most significant drops were a 4.3% decline in deposit and loan facilities, a 6.9% fall in vegetable prices, a 7.6% drop in fruit prices and a 3.4% decline in overseas travel and recreation.
Meanwhile, a report by the Reserve Bank Wednesday said the weighted median consumer price index climbed 0.8% sequentially in the second quarter, and was up 4.2% from a year earlier. At the same time, the RBA's trimmed mean consumer price index climbed 0.8% on quarter and 3.6% on a yearly basis in the three months ended June.
In their latest monetary policy meeting, the Reserve Bank Governor, Glenn Stevens said the inflation would continue to slow in the next few months, reflecting a slower growth in labor costs. The central bank governor noted that the current view of inflation outlook allowed some scope for further easing of monetary policy, if needed. At the meeting, the central bank held the interest rate unchanged at a 49-year low of 3%.
The minutes of the RBA monetary policy meeting of July 7 released Tuesday showed that the economic activity in the economy was not as weak as expected. This was supported by an improvement in most of the economic indicators. The central bank's board therefore said the outlook for the economy was for a gradual recovery beginning later in the year, with the downside risks to that having diminished.
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