Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Australia’s Inflation Falls to Three-Year Low Amid Government Rebates
In the third quarter of 2024, Australian inflation dropped to its lowest level in three and a half years, driven by government subsidies on electricity and declining petrol prices. Data from the Australian Bureau of Statistics revealed that the Consumer Price Index (CPI) rose by 0.2%, slightly under the 0.3% forecast. Annual inflation now stands at 2.8%, down from 3.8%, aligning with the Reserve Bank of Australia's (RBA) 2-3% target range for the first time since 2021.
Key Drivers of Lower Inflation
Electricity prices saw a significant decrease of 17.3% due to government rebates, while petrol costs dropped by 6.2% in the third quarter. For September alone, CPI rose by a modest 2.1% year-on-year, marking the slowest pace since July 2021.
Sticky Core Inflation and RBA’s Policy Outlook
While headline inflation shows improvement, core inflation, measured by the trimmed mean, rose by 0.8% in the quarter, slightly above the projected 0.7%. However, the annual core inflation rate eased to 3.5% from 4.0%. Despite signs of cooling, services inflation remained high at 4.6%, with minimal change from the prior quarter’s 4.5%.
The RBA has maintained its current policy rate at 4.35% since November, assessing it as sufficiently restrictive to guide inflation to its target without harming employment growth. With the next rate review set for Tuesday, the central bank will consider its updated economic forecasts.
