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Aust CPI rose 0.2% in Dec qtr

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AAP

2013-01-23

The price of Australian consumer goods and services rose 2.2 per cent in the year to December, a slower rise than economists had expected.

The consumer price index (CPI), a key measure of inflation, rose 0.2 per cent in the December quarter, after rising by 1.4 per cent in the September quarter, the Australian Bureau of Statistics said on Wednesday.

The CPI was expected to rise by 0.5 per cent in the December quarter for an annual rate of 2.5 per cent, according to an AAP survey of 15 economists.

The Reserve Bank of Australia has a target range for annual inflation of two to three per cent, and the latest figures will inform its February 5 interest rate decision.

The cash rate is currently at three per cent following the RBA's decision to cut by a quarter of a percentage point in December.