Australia consumer inflation gauge rise in August, partially offsets decline in July

Australia’s consumer inflation gauge rose during the month of August, partially offsetting the declined witnessed in July.

The TD Securities-Melbourne Institute consumer inflation gauge rose 0.2 percent from July and was up 1.2 percent from a year ago. Consumer inflation fell 0.3 percent in July after a 0.6 percent spike in June that was the largest in two-and-a-half years.

The Melbourne Institute’s monthly inflation index provides a regular snapshot of CPI trends in Australia. The government’s official inflation report is released quarterly. Further, the government’s quarterly inflation gauge rose 0.4 percent in the June quarter. Annual inflation weakened to 1 percent, the lowest in 17 years.

Moreover, the Reserve Bank of Australia (RBA) has stepped up efforts to support the economy last month by slashing interest rates to a new record low of 1.5 percent. It was the RBA’s second rate cut of the year, as policymakers sought an assertive approach to combat weak consumer price growth.

Meanwhile, the RBA’s next rate verdict will be delivered on Tuesday. The Bank is widely expected to stand pat in what will be the last meeting headed by Governor Glenn Stevens.