Jan 23, 2013

Inflation down, as business absorbs carbon cost

After spiking in the September quarter, inflation declined over the rest of 2012. The carbon tax hasn't hit the economy as hard as many had predicted.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

Last year, inflation surged in the September quarter thanks to the initial impact of the carbon tax and higher prices for fruit and vegetables. But data out today shows that spike collapsed in the December quarter.

In fact, inflationary pressures eased noticeably in the three months to December, taking pressure off consumers and opening the way for the Reserve Bank to cut rates again if it feels the domestic economy — and especially housing — needs another jolt from a cut in interest rates. But that rate cut won’t happen just yet as the RBA will wait to see how 2013 unfolds.

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One thought on “Inflation down, as business absorbs carbon cost

  1. Recalcitrant.Rick

    Wot! You mean Tony Rabbit lied? Gosh!

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