Price rises for fruit and vegetables, furniture and the newspaper, books and stationary category were offset by falls in health costs, petrol and holiday accommodation. The gauge was up by 2. 5 per cent for the 12 months to August, which is much lower than the official inflation rate of three per cent in the year to June, right at the top of the Reserve Bank's target band.
TD Securities head of Asia-Pacific research Annette Beacher is not expecting any surprises from the RBA board meeting about interest rates on Tuesday. "The RBA continues to express uncertainty about Australia's economic health once the mining boom ends, hence for tomorrow's board meeting we expect more of the same stability in interest rates," she said.
Read more here: Business Spectator