Australia consumer prices rose less than forecast

Australian core consumer prices gained less than economists forecast last quarter, giving the central bank scope to resume interest-rate reductions.

The so-called trimmed mean gauge of core prices rose 0.3 percent from the previous quarter, the Bureau of Statistics said in Sydney today, compared with the median forecast of 23 economists for a 0.5 percent gain. The consumer price index advanced 0.4 percent from the previous three months, compared with economists forecast for a 0.7 percent increase.

The currency fell as investors boosted bets Reserve Bank of Australia Governor Glenn Stevens will reduce the 3 percent benchmark rate next month. The central bank lowered borrowing costs six times ― for a total of 1.75 percentage points ― in the 14 months through December as the local dollar’s record stretch above parity drags on growth and the nation’s mining investment boom approaches a crest.
 

(Bloomberg)