Inflation Unchanged in September Quarter as Subdued Activity Dominates Queensland Economy: CCIQ
Australia’s headline inflation rate rose 1.7% over the 12 months to September but still below the Reserve Bank of Australia’s target inflation range of two-three per cent as subdued economic activity continues to weigh on the national economy.
The Chamber of Commerce and Industry Queensland (CCIQ) notes that in the September quarter, travel expenditures , tobacco and property drove the cost of living higher in the third quarter by 0.5% despite falls in the price of automotive fuel, fruit and vegetables.
CCIQ Economist, Jack Baxter said that despite the September quarter’s inflationary findings, the Central Bank is in no position to have an ‘each-way bet’ on the official cash rate when board meets on Melbourne Cup day.
“The Reserve Bank’s reaction to recent inflationary findings must be cautioned as further monetary stimulus will be more likely to fuel the retirees' wealth crisis and the reemergence of the housing price bubble than encouraging productive inflationary activity,” Mr Baxter Said.