November inflation rises to 2.3% amid speculation over pre-election interest rate cut from RBA
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Economists had predicted a November annual CPI inflation figure within the Reserve Bank of Australia’s preferred 2-3% target range. The monthly inflation rate rose slightly to 2.3% in November, according to the latest figures from the Australian Bureau of Statistics.
The consumer price index for the year to November is the first snapshot of economic data in an election year in which prices, cost-of-living and interest rates will be defining issues. After the headline inflation rate held steady at 2.1% in October, economists had predicted a slight uptick in November, although the figure had been expected to remain well within the Reserve Bank’s 2-3% target band.
The RBA is closely watching the underlying inflation rate as it weighs up a potential rate cut at February’s board meeting. The underlying inflation rate – known as the trimmed mean – fell from 3.5% in October to 3.2% in November. Speaking on ABC Radio National on Wednesday morning, the treasurer, Jim Chalmers, said he was confident the numbers would demonstrate the progress that has been made in curtailing inflation.
“These monthly numbers bounce around a little bit,” he said. “They’re not often as reliable as the quarterly figures we get on inflation but what these numbers will show today will be an indication of the very substantial progress we’ve made in the fight against inflation.
