SYDNEY, Dec 2: A private gauge of Australian inflation showed price pressures remained well contained in November, particularly when excluding volatile items like fruit and vegetables, suggesting scope for monetary policy to stay stimulative.
The TD Securities-Melbourne Institute’s monthly measure of consumer prices rose 0.2 percent in November, from October when it increased by 0.1 percent.
The annual pace ticked up to 2.4 percent but was well within the Reserve Bank of Australia’s (RBA) long term target of 2 to 3 percent. Excluding petrol, fruit and vegetables, prices rose only 0.1 percent in November and 1.7 percent for the year.
The central bank holds its monthly policy meeting on Tuesday and is considered almost certain to keep rates unchanged at 2.5 percent amid signs past easing was having the desired effect.
‘For tomorrow’s RBA Board meeting, after three consecutive neutral communiques we expect the RBA to remain neutral and on hold,’ said TD’s head of Asia-Pacific Research, Annette Beacher. ‘The clear signal is that inflation remains benign.’
Monday’s survey showed price rises for fruit and vegetables, furniture and furnishings, and newspapers, books and stationery. These were offset by falls in holiday travel and accommodation, automotive fuel, and alcohol and tobacco.
The trimmed mean measure of inflation, which excludes the largest price rises and falls, was unchanged for a second straight month in November, giving an annual pace of 2.3 percent.
Of the 87 classes of goods and services covered in the survey, 25 showed price increases, while 23 fell and 39 were unchanged. (AGENCIES)
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