SYDNEY- Australia’s consumer inflation slowed in February, helped by a fall in electricity prices, while the continued easing in home building costs and rents supported the case for more rate cuts in the months ahead.
Data from the Australian Bureau of Statistics on Wednesday showed the monthly consumer price index was flat in February from January. The annual pace, however, slowed to 2.4 percent from 2.5 percent, versus forecasts for no change.
The trimmed mean measure – a gauge of core inflation – rose an annual 2.7 percent in February, slowing from 2.8 percent in January, but still staying around the level where it has been for the past three months.
“Today’s inflation data shows more positive news on the inflation story in Australia,” said My Bui, an economist at AMP.
The trimmed mean measure is on track to rise 2.9 percent year-on-year in the first quarter, she said, meaning the core annual gauge will be back in the central bank’s target band for the first time in three years.
