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Australia’s headline inflation rate has bumped higher to 2.3 per cent in November, up from 2.1 per cent in October.
The headline figure was broadly expected to shift higher to 2.2 per cent in the official monthly readout from the Australian Bureau of Statistics.
ABS head of prices statistics Michelle Marquardt said the rise in annual headline inflation in part reflected the timing of government energy subsidies.
“In some states and territories, households received two rebate payments in October in lieu of not receiving a payment in July,” she said.
“From November most households received one payment.”
Progress was logged on all-important underlying measures, with the trimmed mean measure sinking to 3.2 per cent in November, from 3.5 per cent.
“Annual trimmed mean inflation remains higher than consumer price index inflation as it removed large price falls for electricity and automotive fuel,” Ms Marquardt said.
The Reserve Bank of Australia has been putting more emphasis on underlying inflation measures as they are better insulated from volatility and temporary price changes from the likes of power bill relief.
While the annual headline inflation rate has held between the RBA’s two to three per cent target band since August, the central bank has been cautious about cutting interest rates.
A rate cut in February remains on the cards but most economists say underlying price measures will need to undershoot the RBA’s own forecasts for easing to start next month.
Poppy Johnston
(Australian Associated Press)
