Australia’s inflation recedes amid cut costs in gov’t programs
Consumer prices in Australia increased at a slower pace than initially thought in the first quarter of the year amid lowered costs in government programs set in place to boost economic recovery.
Data from the Australian Bureau of Statistics showed Wednesday the trimmed mean core inflation gauge increased 0.3% from the final quarter of 2020, slightly below economists’ forecast of a 0.5% increase. Trimmed mean hiked 1.1% in the first quarter from a year earlier compared to an estimated 1.2% gain.
Following the report, the Australian dollar edged down 0.4% at 77.29 U.S. cents.
The headline consumer price index gained 0.6% from the last quarter of last year, versus economists’ prediction of a 0.9% increase. It improved 1.1% from a year earlier compared to an estimated 1.4% gain.
In an effort to bolster economic activity, the Reserve Bank of Australia adjusted its inflation framework, citing it won’t increase interest rates until consumer prices are sustained within its 2-3% target.