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[FONT=굴림]Inflation gauge boosts case for RBA easing monetary policy[/FONT]
[FONT=굴림]A LEADING measure of inflation in Australia today recorded its lowest annual increase in three years.[/FONT][FONT=굴림][/FONT]
[FONT=굴림]Nearly gone: [/FONT][FONT=굴림]TD Securities strategist Annette Beacher says, "Inflation is all but dead, even allowing for what was clearly a temporary exchange-rate induced blip in prices in January and February." Picture: Bloomberg [/FONT]
[FONT=굴림]The inflation gauge was unchanged in April from March, as what was likely to become Australia's first recession since the early 1990s continued to erode consumer demand.
The easing price pressures will add weight to analysts' arguments that the Reserve Bank of Australia should ignore any inflation inhibitions and continue to loosen policy in an effort to prime growth.
The central bank holds its monthly policy meeting tomorrow, when it is expected to hold rates steady at 3 per cent, in advance of next week's annual budget by the federal Government.
The pace of inflation was unchanged in April compared with March, when prices recorded a 0.1 per cent fall.
However, inflation rose 2.1 per cent from the same period a year ago, according to the monthly TD Securities-Melbourne Institute Monthly Inflation Gauge.
The RBA sets an annual inflation target band of 2-3 per cent.
On a core basis, or excluding volatile items, prices rose 0.2 per cent on a monthly basis, and 3.2 per cent when compared to a year earlier.
Price-rises in April for health, holiday travel, accommodation and house purchases were offset by falls in consumers’ costs for fruit, vegetables, transportation and rental accommodation.
Although fuel rose 1.4 per cent in April, it was 18 per cent below its level from one year ago.
TD Securities senior strategist Annette Beacher said: "Inflation is all but dead, even allowing for what was clearly a temporary, exchange-rate induced blip in prices in January and February."
Prices rose 0.7 per cent in February and 0.8 per cent in January, according to the gauge.
Official government data showed that headline inflation rose 0.1 per cent in the first quarter, compared with the final quarter of last year, and 2.5 per cent on an annualised basis, according to the Australian Bureau of Statistics.
"The recession is killing inflation, and now that the Australian dollar has stabilised, Australia is confronting a greater threat of deflation than any inflation risks," Ms Beacher said.
The RBA will update its inflation forecasts on Friday, when it releases its quarterly statement on monetary policy, which analysts expect to show a sharp downgrading of both growth and inflation forecasts. [/FONT]
[FONT=굴림]A LEADING measure of inflation in Australia today recorded its lowest annual increase in three years.[/FONT][FONT=굴림][/FONT]
[FONT=굴림]Nearly gone: [/FONT][FONT=굴림]TD Securities strategist Annette Beacher says, "Inflation is all but dead, even allowing for what was clearly a temporary exchange-rate induced blip in prices in January and February." Picture: Bloomberg [/FONT]
[FONT=굴림]The inflation gauge was unchanged in April from March, as what was likely to become Australia's first recession since the early 1990s continued to erode consumer demand.
The easing price pressures will add weight to analysts' arguments that the Reserve Bank of Australia should ignore any inflation inhibitions and continue to loosen policy in an effort to prime growth.
The central bank holds its monthly policy meeting tomorrow, when it is expected to hold rates steady at 3 per cent, in advance of next week's annual budget by the federal Government.
The pace of inflation was unchanged in April compared with March, when prices recorded a 0.1 per cent fall.
However, inflation rose 2.1 per cent from the same period a year ago, according to the monthly TD Securities-Melbourne Institute Monthly Inflation Gauge.
The RBA sets an annual inflation target band of 2-3 per cent.
On a core basis, or excluding volatile items, prices rose 0.2 per cent on a monthly basis, and 3.2 per cent when compared to a year earlier.
Price-rises in April for health, holiday travel, accommodation and house purchases were offset by falls in consumers’ costs for fruit, vegetables, transportation and rental accommodation.
Although fuel rose 1.4 per cent in April, it was 18 per cent below its level from one year ago.
TD Securities senior strategist Annette Beacher said: "Inflation is all but dead, even allowing for what was clearly a temporary, exchange-rate induced blip in prices in January and February."
Prices rose 0.7 per cent in February and 0.8 per cent in January, according to the gauge.
Official government data showed that headline inflation rose 0.1 per cent in the first quarter, compared with the final quarter of last year, and 2.5 per cent on an annualised basis, according to the Australian Bureau of Statistics.
"The recession is killing inflation, and now that the Australian dollar has stabilised, Australia is confronting a greater threat of deflation than any inflation risks," Ms Beacher said.
The RBA will update its inflation forecasts on Friday, when it releases its quarterly statement on monetary policy, which analysts expect to show a sharp downgrading of both growth and inflation forecasts. [/FONT]
What do u think about this article?
I thought it had some relation to the inflation syllabus and the monetary policy and RBA syllabus]
do u think it's a good one??!!!!!!