July 27, 2011
Source: www.news.com.au
UNEXPECTEDLY strong inflation in the June quarter was dominated by a small number of its components, but underlying measures indicate inflationary pressure cannot be explained away easily.
The consumer price index (CPI) rose by 0.9 per cent in the June quarter, the Australian Bureau of Statistics (ABS) said on Wednesday.
The rise was more than most economists had expected - an AAP survey showed forecasts were centred on a rise of 0.8 per cent.
It took the annual rate of inflation to 3.6 per cent, from 3.3 per cent.
Underlying inflation measures favoured by the Reserve Bank of Australia (RBA) posted unexpectedly big increases as well.
The trimmed mean and weighted median measures were both up by 0.9 per cent, compared with expectations clustered around 0.7 per cent, lifting the annual growth rate to an average of 2.7 per cent from 2.25 per cent previously.
The headline result was dominated by big rises in automotive fuel - 4.0 per cent in the quarter and 11.3 per cent through the year - and fresh fruit - 26.8 per cent in the quarter and 66.5 per cent over the year.
The rise in fruit prices was mainly caused by Cyclone Yasi in Queensland.
The ABS said banana prices were up by about 138 per cent in the June quarter and by 470 per cent over the March and June quarters combined.
Excluding fruit and auto fuel, the CPI would have risen by 0.4 per cent in the quarter and 2.6 per cent through the year.
To read the full story, follow this link: www.news.com.au/breaking-news/cpi-rise-dominated-by-bananas-petrol/story-e6frfku0-1226102702587
