News from AAP

A quick recap of this week’s Aussie economic statistics

Print This Post A A A

A review of the week’s Australian economic data, January 23 to January 27:

*****

THE AUSTRALIAN BUREAU OF STATISTICS (ABS) PRODUCER PRICE INDEXES (PPI)

Australia’s producer price index at the final stage of production rose 0.3 per cent in the December quarter, for an annual rise of 2.9 per cent.

That compared with a 0.6 per cent rise in the September quarter.

In the December quarter, at the intermediate stage, the PPI was up 0.3 per cent, while at the preliminary stage it also rose 0.4 per cent, the Australian Bureau of Statistics said on Monday.

Over the year to December, at the intermediate stage the PPI rose 4.9 per cent and at the preliminary stage it was up 5.9 per cent.

Economists’ forecasts had centred on a December quarter PPI rise of 0.4 per cent.

Percentage change for December quarter 2011:

Final stage Intermediate Preliminary

0.3 pct 0.3 pct 0.4 pct

Domestic 0.0 pct 0.1 pct 0.2 pct

Imports 2.3 pct 2.3 pct 2.2 pct

*****

ABS CONSUMER PRICE INDEX (CPI)

Australia’s inflation rate has eased by more than economists expected.

The consumer price index (CPI) remained unchanged in Australia in the December quarter, for an annual inflation rate of 3.1 per cent, down from 3.5 per cent previously, the Australian Bureau of Statistics said on Wednesday.

Economists’ forecasts for the headline CPI had centred on a rise of 0.2 per cent in the quarter, for an annual pace of 3.3 per cent.

The latest official forecast from the Reserve Bank of Australia (RBA), in November, was for annual inflation of 3.25 per cent through 2011.

Seasonally adjusted CPI rose 0.2 per cent in the December quarter, and was up 3.0 per cent in the 12 months to December.

The trimmed mean CPI rose 0.6 per cent in the December quarter, for an annual growth rate of 2.6 per cent, data from the ABS showed.

The weighted median CPI rose 0.5 per cent in the December quarter, for an annual rise of 2.6 per cent.

The ABS calculates the trimmed mean and weighted median measures on behalf of the RBA, which uses them to gauge the underlying trend in inflation.

Unlike the headline CPI, the RBA’s underlying measures are subject to revision due to the seasonal adjustment of some of their components.

The RBA adjusts the cash rate to keep the inflation rate in a target band of two to three per cent on average over the medium term.

QUARTERS: DEC SEPT JUN MAR 2011 2011 2011 2011

CPI

Qtrly change (pct) 0.0 0.6 0.9 1.6

Annual change (pct) 3.1 3.5 3.6 3.3

TRIMMED MEAN CPI

Qtrly change (pct) 0.6 0.4 0.8 0.8

Annual change (pct) 2.6 2.4 2.6 2.2

WEIGHTED MEDIAN CPI

Qtrly change (pct) 0.6 0.4 0.8 0.8

Annual change (pct) 2.6 2.7 2.8 2.6

SEASONALLY ADJUSTED CPI

Qtrly change (pct) 0.2 0.5 1.0 1.3

Annual change (pct) 3.0 3.5 3.7 3.3

*****

WESTPAC-MELBOURNE INSTITUTE LEADING INDEXES OF ECONOMIC ACTIVITY

The Australian economy is facing an increasingly negative outlook, a new survey shows, adding to the case for further interest rate cuts this year.

The Westpac/Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, was 1.6 per cent in November, well below its long-term trend of 2.9 per cent.

This contrasted with the annualised growth rate of the Coincident Index – indicating current activity – which was 3.0 per cent, just below its long-term trend of 3.1 per cent.

The level of the index of economic activity fell 0.5 of a point (down 0.2 per cent) in November.

Westpac chief economist Bill Evans said the growth rate reported by the index had fallen from 4.5 per cent in August.

*****