Australia’s monthly CPI rises 3.0% y/y in Aug, core cools

[SYDNEY] Australian consumer prices rose at the fastest annual pace in a year in August, but a key measure of core inflation eased back and kept the door open to a further cut in interest rates.

Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose 3.0 per cent in August compared to a year earlier, up from 2.8 per cent in July and just above median forecasts of 2.9 per cent.

The key trimmed mean measure of core inflation ran at an annual 2.6 per cent in August, down from 2.7 per cent in July. A measure excluding volatile items and holiday travel climbed to 3.4 per cent, from 3.2 per cent. REUTERS