Australia’s CPI (consumer price index) inflation drop more than predicted to an 8-month low in Feb, according to statistics released on Wednesday. Owing primarily to lower rises in housing & fuel prices.– The Reserve Bank of Australia (RBA)
According to figures from the (ABS) Australian Bureau of Statistics. (CPI) Consumer price index inflation increased by 6.8 percent in the year to Feb. Which was less than the predicted growth rate of 7.1 percent & significantly less than the figure from the prior month of 7.4 percent.
After rising to an over-30-year peak of 8.4 percent in Dec. The figure indicated consumer price index inflation at its lowest level since June 2022. Marking the second consecutive month that inflation has decreased.
The figures from Wednesday indicate that. As the consequences of high interest rates start to be felt by the economy, consumption & economic activity are likely declining. The RBA (Reserve Bank of Australia) is given additional encouragement by the data to think about stopping its interest rate increases.
After the report, the Australian dollar dropped 0.2 percent. Although the ASX 200 index recovered some of its earlier losses on the expectation of a less aggressive The Reserve Bank of Australia.
Nonetheless, the number was still significantly higher than the RBA’s goal range of 2 percent to 3 percent. Which the central bank has cautione will probably not be reach until mid-2025.
The Reserve Bank of Australia increased interest rates by a total of 350 bps since the beginning of 2022. Putting them to a level that is over Eleven years high as the bank worked to contain a sharp increase in inflation following the COVID-19 epidemic.
Due to pressure from high rates & inflation, the Australian economy has saw a sharp decline in growth. And the bank recently indicated that it is considering pausing its rate hikes.