Inflation in Australia decrease to the level of 6.8% in August

A sharp increase in the interest rate slowed down a bit the growth of inflation in Australia. This was a signal for easing price pressure. 

The Australian Bureau of Statistics says that in August the consumer price index grew by 6.8% in annual terms in contrast to the 7% growth last month. However, excluding fluctuating fuel and vegetable prices, growth was 6.1% in July and 6.2% in August.

Australian statistician David Gruen declared the published data indicates the inflation in the 3rd quarter and in September. A September report and data about the level of inflation were published on October 26. 

Besides, Gruen added that the inflation’s decrease in July and August was related to the fall in fuel prices because the price increase for gasoline shortened from 29.2% to 15% this time. 

The Reserve Bank conducting the most serious tightening of monetary policy in several last years was expecting a fall in fuel prices. RBA has already raised the credit rates from 0.1% to 2.35% for five months and plans to continue to raise them. The RBA related to the monetary policy will be on Tuesday, October 4.

Bank Deputy Governor Michele Bullock has already said that this information won’t influence the first stage of policy discussions because the management will view the data for several months. Also, she said that at the beginning of next year the bank forecasts the highest growth of inflation from 7.75% to 8%.