Australia’s core consumer price growth slowed last quarter, giving the central bank scope to extend a period of steady interest rates.
The trimmed mean gauge of core prices rose 0.4 percent from the previous quarter, the Bureau of Statistics said in Sydney today, compared with the median forecast of 24 economists for a 0.5 percent gain. The consumer price index advanced 0.5 percent from the previous three months, compared with a 0.4 percent median estimate.
The currency fell as investors bet Reserve Bank of Australia Governor Glenn Stevens will leave the benchmark rate at a record-low 2.5 percent for an extended period. The central bank lowered borrowing costs by 2.25 percentage points between late-2011 and August last year to spur domestic industries and encourage hiring of jobless miners.
Source : Bloomberg