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Annual inflation weaker than expected makes the dollar sink

AUDUSD News by Newsroom on 19:54 January 24, 2017 EST
The last quarter of 2016 saw inflation weaker than previously anticipated amid a slump in the price of health care, transport and communications according to the Australian Bureau of Statistics report released on Wednesday.

The headline consumer price index rose 0.5 per cent from the previous quarter, when it rose 0.7 per cent.

Annual CPI growth was up to 1.5 per cent from 1.3 per cent, however lower than the forecasts for a 1.6 per cent increase. The quarterly result was also below the 0.7 per cent anticipated.

Core inflation also missed expectations showing prices gained only 0.4 per cent in the quarter and an annual average of 1.6 per cent.

These figures will put little pressure on the central bank to raise interest rates anytime soon.