Inflation up but under control says Swan


The CPI figures came out today and they’re higher than economists expected.

In the September quarter, the price of Australian consumer goods and services rose 1.4 per cent, taking the total rise this year, to two per cent.

Maritza Munoz reports.

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A 15.3% jump in electricity prices was a key factor driving up the September quarter result.

Rises in fruit and vegetable prices also contributed to the higher number.

But Treasurer Wayne Swan says inflation is still contained, despite being impacted by temporary one-off price increases.

He’s estimated the carbon price will add 0.7 percentage points to the CPI and 10% to electricity prices in 2012 and 2013.

Some economists suggest this could mean no further interest rate cuts, with the Reserve Bank choosing to keep the cash rate steady at their next meeting on Melbourne Cup day.

Maritza Munoz, QUT News.