Sponsored Links
An unofficial monthly inflation gauge for Australia increased at a faster pace in November, a report from the Melbourne Institute and TD Securities showed on Monday. The acceleration was mainly due to higher prices of motoring, fruits & vegetables, and household supplies.
Prices, measured on the inflation gauge rose 2.1% year-on-year in November, falling within the Reserve Bank of Australia's target range of 2% to 3%. This follows a 1.2% increase in the inflation gauge in October. Compared to the previous month, prices rose by 0.3%, following a 0.3% fall in October.
TD Securities Senior Strategist Annette Beacher indicated that price decline has apparently bottomed out and was now on its way back up, increasing the likelihood of more interest rate hikes. In its latest monetary policy meeting, the central bank raised the benchmark interest rate by 25 basis points to 3.50%, and indicated further rate hikes in the near future. That was the second hike in a row.
Beacher suggested that a cash rate of 3.50% was too accommodative for "an economy clearly outperforming global peers". The RBA Board convenes for its next monetary policy meeting on December 1, and is widely expected to raise the overnight cash rate by a further 25 basis points to 3.75%.
According to Westpac economists, the monthly increase in the inflation gauge was the strongest since July, while the annual rate was the highest since April. Westpac senior economist Anthony Thompson noted that the detail of the November inflation gauge demonstrated broader price pressures than in the prior two months.
Latest official data showed that consumer prices increased 1.3% year-on-year in the third quarter, slower than the 1.5% rise in the previous quarter. Underlying inflation, which excludes housing and financial & insurance services, grew 1.2%. On a quarterly basis, consumer prices were up 1% in the third quarter, faster than the 0.5% rise in the preceding quarter.
In other news, the Australian Bureau of Statistics reported that the value of inventories in Australia increased 0.8% sequentially in the third quarter to A$134.91 billion. Analysts had expected the value of inventories to fall 1% on quarter after the 3.4% decline in the previous three months. In addition, company profits were down 2.1% compared to the second quarter.
Earlier in the day, the central bank reported that total credit provided to the private sector by financial intermediaries was flat on month in October, following the 0.1% decline in September. Over the year to October, total credit rose by 1.1%. Housing credit increased 0.7% in October, the data showed, following an increase of 0.7% in September.
Also on Monday, the Housing Industry Association reported that new home sales in Australia fell for the second straight month following a first time buyer surge in August. Sales of new homes were down 6% month-on-month in October, after the 4.5% decrease in the previous month.
"Sales activity from investors and upgrade owner occupiers has not chimed in to offset weakening first home buyer-related activity," said Harley Dale, Chief Economist at HIA, commenting on the data. "A decent and sustainable new home building recovery needs strong momentum from private sector trade-up buyers and investors and we seem to be falling short on that score as we near the end of 2009."
The Australian dollar edged higher on Monday morning in Asia as traders inclined to riskier-assets on hopes that the central bank will increase its benchmark interest rates tomorrow for a third consecutive month.
0 komentar:
Post a Comment