Inflation Well Within Target Range

LATEST AUSTRALIAN BUSINESS NEWS

Australia’s cost of living – as indicated through the Consumer Price Index (CPI) – has risen slightly over the 3 months ending 31 December 2005. The CPI rise was just 0.5%. This very slight increase has placed the annualised inflation rate at 2.8% for calendar year 2005. The low CPI increase is the smallest recorded for one 3 month period since 2004. The current inflation rate sits comfortably within the desired range set by the Reserve Bank of Australia, indicating that there is unlikely to any move in official interest rates in the short to medium term.

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David

david.taylor@agarcarlyon.com