Private analysts TD Securities-Melbourne Institute’s inflation gauge rose 0.6 per cent during August, but according to their head of Asia Pacific business, Annette Beacher, there does not appear to be any noticeable impact from the introduction of the Carbon Tax.
A few goods and services increased in price during August which contributed to the 0.6% increase, however there were also a number of items whose prices fell over the same period. For example, fruit, vegetable, petrol, alcohol and tobacco prices rose sharply in August, offset by lower prices for footwear, holiday travel, accommodation and computing equipment.
Ms Beacher explains that it is difficult to determine whether the carbon tax contributed to any of the price rises, but with relative unchanged utility prices, it seems unlikely.
Overall, TD Securities predict that inflation will remain around the lower ends of the RBA target of 2-3% for 2012.
On another bright note for Australian mortgage payers, experts are tipping at least one more interest rate cut before the end of the year, especially if the slowdown in China and the Euro Zone crisis continue to influence our domestic economic forecasts.