MoneyInflation softens to 1.9pc despite surging fuel prices

14:00  31 october  2018
14:00  31 october  2018 Source:   msn.com

Petrol prices hit 10-year high putting squeeze on families

Petrol prices hit 10-year high putting squeeze on families Petrol prices have risen to a decade high, as fuel costs become the largest weekly purchase for families.

The introduction of child care subsidies and lower telecommunication charges helped soften the blow of more expensive fruit and fuel .

High gas prices drive strong first quarter for Origin: Inflation softens to 1 . 9 pc despite surging fuel prices Australia's inflation rate has aga Gas prices are high because of high oil prices , commodities traders, and supply and demand. Oil prices fell in 2015 and 2016 because a strong

Inflation softens to 1.9pc despite surging fuel prices © Provided by ABC Business

Australia's inflation rate has again slipped below the Reserve Bank's target range of living costs increasing by 2-to-3 per cent over the year.

The consumer price index rose 0.4 per cent over the September quarter, or 1.9 per cent for the year.

That is a weaker inflationary pulse than the 2.1 per cent recorded previously.

The Australian Bureau of Statistics said the most significant rises over the quarter were international holiday travel and accommodation (+4.3 per cent), tobacco (+1.8 per cent), property rates and charges (+2.3 per cent), automotive fuel (+1.4 per cent) and fruit (+2.4 per cent).

These were partially offset by falls in child care (-11.8 per cent) and telecommunications equipment and services (-1.5 per cent).

"Modest rises in housing costs, including rents, utilities and property rates, and a fall in child care out-of-pocket expenses, saw a subdued rise in the CPI this quarter," ABS chief economist Bruce Hockman said.

More to come.

RBA shrugs off falling house prices, weak inflation to keep rates on hold at 1.5pc.

Falling house prices and continued low inflation have not altered the Reserve Bank's determination to keep its current interest rate settings.

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