Australia Inflation Climbs 0.8% In Q4

Consumer prices in Australia gained a seasonally adjusted 0.8 percent in the fourth quarter of 2013 compared to the previous three months, the Australian Bureau of Statistics said on Wednesday.

The headline figure was higher than forecasts for an increase of 0.4 percent but slower than the 1.2 percent jump in the third quarter.

Among the individual components, prices for recreation were up 2.1 percent on quarter, along with food and alcohol (both 1.6 percent), communications (1.2 percent), housing (0.5 percent), furnishings (0.4 percent) and financial services (0.2 percent).

Education costs were flat, while transportation was down 0.1 percent, health care fell 0.5 percent and clothing lost 1.1 percent.

The most significant price rises this quarter were for domestic holiday travel and accommodation (+6.9 percent), fruit (+8.1 percent), vegetables (+7.1 percent), new dwelling purchase by owner-occupiers (+1.0 percent), international holiday travel and accommodation (+2.6 percent) and tobacco (+2.2 percent).

The most significant offsetting price fall this quarter was for automotive fuel (-1.1 percent).

On a yearly basis, inflation climbed 2.7 percent – also topping expectations for 2.4 percent following the 2.2 percent gain in the three months prior.

Among the individual components, prices for education were up 5.6 percent on year, along with alcohol (5.4 percent), health care (4.4 percent), housing (4.3 percent), recreation (2.4 percent), transportation (1.9 percent), communications (1.7 percent), financial services (1.6 percent) and furnishings (1.1 percent).

Housing costs dipped 1.3 percent.

The Reserve Bank of Australia’s trimmed mean and weighted median were both up 0.9 percent on quarter and 2.6 percent on year.

The forecast for both the mean and median were for an increase of 0.6 percent on quarter and 2.3 percent on year – which would have been unchanged from the third quarter.

Also on Wednesday, Westpac’s consumer confidence index dipped 1.7 percent on month in January, falling to a score of 103.3. That follows the 4.8 percent monthly decline in December to 105.0.

The index remains above the 100-point plateau, which separates optimism from pessimism – although it touched a six-month low.

Among the individual components of the survey, the driving factor was an increase in unemployment expectations – which added 0.7 percent following the 4.6 percent spike in the previous month.

Family finances were down 2.4 percent, while the economic outlook fell 3.2 percent.

The material has been provided by InstaForex Company – www.instaforex.com

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