In­fla­tion inch­ing up­ward but still no dan­ger

Port Douglas & Mossman Gazette - - FRONT PAGE -

IN­FLA­TION is ex­pected to re­main be­nign de­spite the weaker Aus­tralian dol­lar, giv­ing the Re­serve Bank scope to cut the cash rate fur­ther.

The TD Se­cu­ri­ties/Mel­bourne In­sti­tute Monthly In­fla­tion Gauge rose 0.2 per cent last month, fol­low­ing a 0.1 per cent rise in Au­gust and an in­crease of 0.5 per cent in July. The rate for the 12 months to Septem­ber was 2.1 per cent.

Un­der­ly­ing in­fla­tion is ex­pected to re­main in the bot­tom half of the RBA’s 2 per cent 3 per cent tar­get band to the end of the year, TD Se­cu­ri­ties head of Asia-Pa­cific re­search An­nette Beacher said. ‘‘We fore­cast un­der­ly­ing in­fla­tion to rise by 0.5 per cent in the quar­ter, for an an­nual rate of 2.1 per cent,’’ she said. TD said the Septem­ber re­sult was driven by price rises for fruit, which in­creased 3.2 per cent, as well as veg­eta­bles, al­co­hol and elec­tronic equip­ment.

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