Australian CPI Slows, Indicating Peak in Inflation

According to the Australian Bureau of Statistics (ABS), the consumer price index (CPI) rose by 6.9% year-on-year in October. This was a slowdown from the 7.3% increase in September, as prices for fruit and vegetables fell sharply and the cost of vacation travel dropped significantly.

The CPI for October was slightly lower than expected at 7.4%, suggesting that inflation in Australia may have peaked and that the Reserve Bank of Australia may not have to raise interest rates as drastically as expected.

Core CPI rose 0.3% in October, the smallest increase since November 2021.

Weaker inflation figures could prompt the Reserve Bank of Australia to slow its rate hikes after it raised rates by a total of 2.75% to 2.85%, a nine-year high, to fight inflation.

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