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CPI grows 0.4% in September

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
181018-Inflation

The Consumer Price Index (CPI) rose 0.4% in September (Q3) as forecast, according to the Australian Bureau of Statistics (ABS).

Australian inflation remains weak, as CPI figures reveal a 0.4% increase, following a rise of 0.4% in Q2.

The figures were below market expectations for an increase of 0.5%, while core inflation in Q3 was forecast to rise by 0.4% quarter to quarter, with annual growth at 1.9%.

The AUD/USD pre-release remained steady at 0.7093 , and dropped fifteen points moments following the release.

IG analyst Kyle Rodda say the CPI generally plays into the Reserve Bank of Australia’s outlook, and these figures shouldn’t shift rate expectations.

CPI
Source: ABS

CPI September figures

“Annual growth in the CPI fell back below 2 per cent in the September quarter 2018. 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.” Said Chief Economist for the ABS, Bruce Hockman.

International holiday travel and accommodation were the most significant rises this quarter, with a 4.3% increase. While, child care saw the worst fall this quarter following the introduction of the Child Care Subsidy, with an 11.8% decrease.

The ABS said property rates and charges rose 2.3%, automotive fuel 1.4 % and fruit increased 2.4%.The rise was partially offset by falls in child care and telecommunications equipment and services, according to the ABS.

The CPI rose 1.9 per cent through the year to September quarter 2018, having increased 2.1 per cent through the year to the June quarter 2018.

"The CPI is an important macro-economic indicator that impacts the lives of all Australians. These two articles provide a history of the ABS's measurement of the CPI and how inflation has evolved in Australia over the past 70 years". Said Mr Hockman.

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