July 04, 2011
Source: ABC News
Story by: Michael Janda
A widely-watched private sector inflation measure shows consumer prices were flat in June, and inflation remains within the Reserve Bank's target range.
The TD Securities - Melbourne Institute Monthly Inflation Gauge was flat last month, after rising 0.2 per cent in May and 0.3 per cent in April.
That has resulted in a fall in the gauge's headline annual rate of inflation from 3.3 per cent in May to 2.9 per cent in June.
More importantly, the trimmed mean of the gauge (which removes the most volatile price movements, and is the Reserve Bank's preferred measure) rose by only 0.1 per cent in June to 1.8 per cent for the financial year.
TD Securities head of Asia-Pacific research Annette Beacher says the number probably takes any immediate pressure off the Reserve Bank to lift interest rates.
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