Inflation stays steady, beer rises

The flat inflation figure also gives the RBA less incentive to lift the cash rate.

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• Signs good for rates cut

THE Consumer Price Index (CPI) was unchanged in the December quarter 2011, compared with a rise of 0.6% in the September quarter.

The flat inflation figure also gives the RBA less incentive to lift the cash rate.

The most significant price rises in December were:

• domestic holiday travel and accommodation (+7.3%),
• rents (+1.0),
• telecommunication equipment and services (+1.1%),
• beer (+1.2%) and
• automotive fuel (+0.7%).

The most significant offsetting price falls were:

• fruit (-13.4%),
• pharmaceutical products (-5.6%),
• vegetables (-5.0%),
• audio, visual and computing equipment (-3.4%),
• international holiday travel and accommodation (-1.9%) and
• motor vehicles (-1.2%).

The CPI rose 3.1% through the year to the December quarter, compared with a rise of 3.5% through the year to the September quarter.

The CPI measures rises and falls in the cost of living based on a 'basket' of goods the ABS deems to be representative of living costs.

Further information is available in Consumer Price Index, Australia (cat. no. 6401.0).