A customer looks at products marked with discounted prices on display at a chemist in a shopping mall in central Sydney, Australia, July 25, 2018. REUTERS/David Gray/File photo
SYDNEY – Australian consumer prices rose by more than expected in the September quarter, driven largely by petrol and rents, while core inflation also topped forecasts, adding to risks that interest rates might need to increase further.
Data from the Australian Bureau of Statistics on Wednesday showed the consumer price index (CPI) rose 1.2 percent in the third quarter, above market forecasts of 1.1 percent and up from a 0.8 percent increase the previous quarter.
The annual pace of inflation slowed to 5.4 percent, from 6 percent, but was again above forecasts of 5.3 percent. For September alone, the CPI rose 5.6 percent compared to the same month a year earlier, up from 5.2 percent in August.
A closely watched measure of core inflation, the trimmed mean, rose 1.2 percent in the third quarter, to top forecasts of 1.1 percent. The annual pace slowed to 5.2 percent, from 5.9 percent.