SYDNEY : Two men dressed in masks carry advertising boards in a retail street of Sydney on Wednesday. — AFP Photo SYDNEY, Apr 23 (AFP) : Australian inflation was weaker than expected in the first quarter of the year, data showed Wednesday, easing pressure on the central bank to hike interest rates as it supports the transition from a mining-driven boom.
The consumer price index (CPI) rose 0.6 per cent in January-March from the previous three months, when it climbed 0.8 per cent, the Australian Bureau of Statistics (ABS) said.
In the year to March the CPI was up 2.9 per cent-a tad down from 2.7 per cent in January-December but within the central bank's 2.0-3.0 per cent target.
Economists had tipped the rate to come in at 0.8 per cent quarter-on-quarter and 3.2 per cent over the year.
The Australian dollar slipped to as low as 93.15 US cents from 93.67 US cents Tuesday, with analysts saying the weaker figure could see the RBA keep its official cash rate at a historic low of 2.5 per cent. The bank holds its next policy meeting early next month.
"It was a good result and the RBA will welcome the low reading after the very high fourth quarter read," said ANZ chief economist Ivan Colhoun.
"I think this will allow the RBA board to continue this very accommodative setting of monetary policy that it currently has for some time further.
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