Cigarettes, holiday travel and accommodation price rises drove September inflation higher, while lower fuel, newspapers, books and stationary prices reduced some of the pressure, according to the TD Securities – Melbourne Institute Monthly Inflation Gauge. The index rose 0.3% in September for an annual rate of 1.9% while the comparable August figures were 0.1% and 1.7% respectively. Annette Beacher, Chief Asia-Pacific Macro Strategist at TD Securities said, “We expect headline inflation to jump by 0.8% in the (September) quarter, to be 1.8% higher than a year ago, while we forecast underlying inflation to increase by 0.5% in the quarter, for an annual rate of 2.4%.” She said the weaker exchange rate is increasing “tradeables” inflation while subdued domestic inflation is providing some relief for consumers. Underlying inflation, as measured by the trimmed mean, rose 0.2% for the month and is 1.6% for the year.
09 October 2015