Monthly inflation in Australia has slightly increased to 2.3% in November, though it remains below the Reserve Bank's expectations. This development strengthens the possibility of an interest rate cut in February, as the central bank aims to bring underlying inflation back within its target range.
Monthly inflation has ticked up ahead of the Reserve Bank ’s first interest rate decision in February, but remains below the bank’s expectations, keeping a pre-election interest rate cut on the cards for Prime Minister Anthony Albanese.
Economists were expecting headline inflation to edge higher to 2.2 per cent, and markets were pricing in a roughly 70 per cent chance of a rate cut in February ahead of the latest data. “We know that inflation doesn’t always moderate in a perfectly straight line,” he said. “These new numbers are an important reminder of the very substantial and very sustained progress that we have made in the fight against inflation. When we came to office, inflation had a six in front of it, and it was rising. Now inflation has a two in front of it.”Ahead of the release of the figures, Capital.
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