Inflation stays steady, beer rises

INFLATION has stayed steady since last quarter, with rent, beer and petrol among the strongest pressures on the cost of living.

The flat inflation figure also gives the RBA less incentive to lift the cash rate.

THE Consumer Price Index (CPI) was unchanged in the December quarter 2011, compared with a rise of 0.6% in the September quarter.

The flat inflation figure also gives the RBA less incentive to lift the cash rate.

The most significant price rises in December were:

• domestic holiday travel and accommodation (+7.3%),
• rents (+1.0),
• telecommunication equipment and services (+1.1%),
• beer (+1.2%) and
• automotive fuel (+0.7%).

The most significant offsetting price falls were:

• fruit (-13.4%),
• pharmaceutical products (-5.6%),
• vegetables (-5.0%),
• audio, visual and computing equipment (-3.4%),
• international holiday travel and accommodation (-1.9%) and
• motor vehicles (-1.2%).

The CPI rose 3.1% through the year to the December quarter, compared with a rise of 3.5% through the year to the September quarter.

The CPI measures rises and falls in the cost of living based on a 'basket' of goods the ABS deems to be representative of living costs.

Further information is available in Consumer Price Index, Australia (cat. no. 6401.0).

Originally published as Inflation stays steady, beer rises