Original article by Adam Creighton
The Australian – Page: 2 : 30-Jan-20
Official data shows that headline inflation rose 0.7 per cent in the December quarter, compared with 0.5 per cent in the three months to September. The annual inflation rate rose to 1.8 per cent. Factors such as higher prices for fruit, meat and petrol contributed to the increase in the inflation rate. Ben Udy of Capital Economics says the CPI data should ensure that the Reserve Bank of Australia leaves the cash rate on hold in February. The central bank expects core inflation to rise to 1.8 per cent by the end of 2020.
CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS