AFP, Sydney :
Australian inflation eased to a 17-year low in April-June, official figures showed Wednesday, raising the prospects of another interest rate cut to shore up the economy.
Borrowing costs are already at a record-low of 1.75 percent and economists said they could fall further after the consumer price index rose one percent year on year, the weakest level since the June quarter of 1999.
It was also well off the Reserve Bank of Australia’s target of 2.0-3.0 percent.
The 0.4 percent on-quarter reading, however, matched market expectations and was stronger than in the January-March period, where prices fell 0.2 percent-the first drop since 2008.
Australia has been growing stronger than most of the world’s most advanced economies, but like most countries it is struggling to kickstart inflation, with oil prices subdued and global trade tepid.
Australian inflation eased to a 17-year low in April-June, official figures showed Wednesday, raising the prospects of another interest rate cut to shore up the economy.
Borrowing costs are already at a record-low of 1.75 percent and economists said they could fall further after the consumer price index rose one percent year on year, the weakest level since the June quarter of 1999.
It was also well off the Reserve Bank of Australia’s target of 2.0-3.0 percent.
The 0.4 percent on-quarter reading, however, matched market expectations and was stronger than in the January-March period, where prices fell 0.2 percent-the first drop since 2008.
Australia has been growing stronger than most of the world’s most advanced economies, but like most countries it is struggling to kickstart inflation, with oil prices subdued and global trade tepid.
