Australian inflation index falls slightly in November

December 5th, 2011 - 4:55 pm ICT by IANS  

Sydney, Dec 5 (IANS) Australia’s consumer prices fell slightly in November, mainly due to a decrease in the cost of fruit and vegetables, automotive fuel and holiday travel and accommodation, according to the TD Securities-Melbourne Institute inflation gauge released Monday.

The survey, conducted by the investment banking arm of Toronto Dominion (TD) Bank and Melbourne Institute of Applied Economic and Social Research, showed the inflation gauge fell 0.1 percent in November, following a 0.1 percent rise in both October and September, reported Xinhua.

In the year to November, the TD Securities-Melbourne Institute inflation gauge rose by 2.1 percent, following a 2.6 percent rise for 12-month period to October.

Both figures are within the Reserve Bank’s two to three percent inflation target band.

Contributing to the overall change in November were price rises for household appliances, utensils and tools, furniture and furnishings and new dwelling purchase by owner-occupier, TD Securities said.

They were offset by price falls in fruit and vegetables, automotive fuel and holiday travel and accommodation.

In November, the price of fruit and vegetables fell by 2.1 percent, while the fuel price dropped by 3.5 percent.

Annette Beacher, head of Asia-Pacific Research at TD Securities, said the inflation gauge showed that price pressures faded in the final months of 2011.

“Third quarter GDP (gross domestic product) is shaping up to post another strong outcome this week, where we expect another quarterly growth rate of at least one percent, driven by consumption and investment, for an annual GDP growth of 2.5 percent,” she said in a statement Monday.

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