Interest rates fall on lower-than-expected December CPI

31 January 2024

 

Summary: Annual Inflation rate slows to 4.1% in December quarter, less than expected; RBA preferred measure slows from 5.1% to 4.2%; ACGB yields fall significantly; rate-cut expectations harden; alcohol & tobacco, housing main drivers of result. In the early 1990s, high rates of inflation in Australia were reined in by the “recession we had to have” as it became known. Since then, underlying consumer price inflation has averaged around 2.5%,...

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