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INFLATION REMAINS STEADY IN AUSTRALIA.
SYDNEY, Sept 1 Asia Pulse - Inflation pressures continue to moderate going into the September quarter, an August price indicator has shown.
Prices of consumer goods and services rose by 0.3 per cent between July and August, the TD Securities/Melbourne Institute Inflation Gauge found.
This compares with no change between June and July.
Despite the ongoing boom in house prices, more general inflation remains well in check, TD Securities chief strategist Stephen Koukoulas said.
He said the annualised inflation rate over the past six months had decelerated to a point below the bottom of the Reserve Bank's target range of one to two per cent.
Mr Koukoulas said these results would suggest that interest rate cuts remain on the RBA's agenda, even though the ongoing housing price gains and rapid credit growth work against it moving to lower rates in the near term.
The Reserve Bank of Australia board meets tomorrow.
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