Australia’s inflation exceeds estimates

The Reserve Bank of Australia has adjusted its inflation framework to allow the economy to run a little hotter. It doesn’t intend to tighten borrowing costs until inflation is sustainably within the 2%-3% target.

SYDNEY: Australia’s consumer prices rose faster than forecast in the final three months of last year as the government amended funding to various stimulus programmes amid an economy regaining momentum.

The consumer price index advanced 0.9% from the third quarter, underpinned by increases in tobacco excise, compared with economists’ estimates of a 0.7% gain, data from the Australian Bureau of Statistics showed. Annual CPI also beat forecasts, similarly rising by 0.9% versus an estimated 0.7%.