Oz Inflation Above RBA’s Comfort Levels

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By Rudi Filapek-Vandyck

The Australian Bureau of Statistics has just released the consumer price index for the December quarter, showing core inflation as measured by the two preferred measurements by the Reserve Bank of Australia, remains high in Australia.

On a weighted median basis inflation rose by 1.1% from the previous quarter and by 3.8% compared with the final quarter of 2006. On a trimmed mean basis the respective numbers are 1.0% and 3.4%.

All these numbers are higher than in the September quarter of last year. They are also above the RBA’s comfort levels of maximum 3% annualised.

The ABS’s headline CPI figure for the final quarter of 2007 printed 0.9% up on Q3 and 3.0% up on the previous year.

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