The Age --- Page: B1-B2 : 25 January 2007 Original article by Nassim Khadem
ABIX Summary
Australia's CPI shows headline inflation declined 0.1% in the December 2006 quarter to the lowest level since the March 1999 quarter. The annual rate fell from 3.9% in the previous quarter to 3.3%, associated with a 5.2% fall in fruit prices and a 12.4% decline in petrol prices in the December 2006 quarter. More significantly, the Reserve Bank of Australia's (RBA) measures of underlying inflation rose by only 0.5% in the quarter and by 3% over the year, which was less than expected. Economists believe there is now insufficient justification for another interest rate rise in February 2007. Macquarie Bank interest rate strategist, Rory Robertson, expects the RBA will maintain rates until at least May 2007.
