Anyloan Australia :: News

Anyloan Australia News

Inflation fall strengthens case for rate cuts

Source: ABC News: 06 Dec 2011

A leading unofficial measure of inflation eased last month due to falling food and fuel prices, strengthening the case for interest rate cuts next year.

The TD Securities-Melbourne Institute Inflation Gauge fell 0.1 per cent in November to an annual rate of 2.1 per cent.

The trimmed mean - the Reserve Bank's preferred measure of inflation - was at 2.2 per cent for the year.

The result marks a two-year low, and falls at the lower end of the Reserve Bank's target range of 2 to 3 per cent.

A 2.1 per cent fall in the cost of fruit and vegetables eased price pressures, while fuel costs fell 3.5 per cent in the month and prices for travel and accommodation also eased.

But increased prices for household appliances, tools, furniture and new homes offset those falls.

TD Securities head of Asia-Pacific research Annette Beacher says petrol prices could begin to rise in the coming months.

"I think as we start to see a little bit more unrest in the Middle East and we are starting to see oil back over the $100-a-barrel mark we think that's the last of the sharp falls in fuel," Ms Beacher said.

Ms Beacher says the result strengthens the case for a cut in the official cash rate next year, but suggests it may be too soon for the central bank to act this month.

"We could be talking a year or two down the track before we start talking about higher interest rates," she said.

"The European crisis at the moment is in a holding pattern, so I think the RBA is best to sit tight and wait for this crisis to unfold next year and certainly be in a position to cut by 50 or 100 [basis] points should we find ourselves in a 2008 liquidity situation."

The monthly TD Securities-Melbourne Institute inflation measure is based on the methodology used by the Australian Bureau of Statistics to calculate its official quarterly inflation figures.

ABC News

Finance Articles

4 Steps Get Rid Of Debt Problems
Are you drowning in debt and having trouble seeing your way out? Follow these steps and you may just see that... read more

Business Loans: Managing interest rate risks
"I want the protection in the current low interest rate environment but I don't want to be locked in for too... read more

Infestation of sweet deals
They look like an easy solution to your credit card debt ... but balance transfers come with complex arrangements... read more

Finding the Right Home Mortgage Loan
With over 3000 home loans on the Australian market it would be easy to dismiss them as marketing overkill... read more

Tackle Bad Credit With These Simple Ideas!
Bad credit can make it difficult to do business with certain types of companies. Poor credit impacts your... read more

Financial Oppression
Here is why so many people are in despair and suffering emotional problems related to debt. A candid explanation... read more

The Backwards Logic Behind the Debt Snowball Method
Would it make sense to state that some of the best debt repayment advice is the wrong advice? It seems strange,... read more

Getting the Most Out of Your Bank
Having a bank that meets all of your financial needs is an asset that many people don't appreciate. If you... read more

Dividends And How To Profit By Them
An interesting thing I found out was that apart from being share trader I have also become a “Dividend... read more

Car Leasing
Leasing is an often misunderstood car financing option so, in response to subscriber feedback, we've included... read more

Finance News

Personal Loans to help Australians in need: FSO
Oct 29 :: As Australia prepares to clean up following devastating fires and floods, Financial Services Online CEO, Andrew... read more

Small business loans to help Aussie businesses through tough times
Nov 27 :: Financial Services Online has today announced a new credit facility for Australian business customers who... read more

Police issue warning about bank scam
Nov 20 :: Melbourne police are warning people about a scam in which fraudsters pose as bankers and ask for money.They... read more

ANZ nets solid profit despite wealth management
Oct 26 :: ANZ banking group has reported a solid full-year result with net profit attributable to shareholders up 6... read more

Millions lack access to basic financial services
Jun 01 :: Nearly 3 million Australians do not have access to basic financial products such as a credit card, car insurance... read more

Reserve Bank leaves interest rates steady
Apr 04 :: The board of the Reserve Bank of Australia has left interest rates unchanged at 4.25 per cent at its monthly... read more

Big banks not too profitable: RBA
Feb 25 :: The governor of the Reserve Bank says the Australian banking sector is not too profitable.Appearing... read more

Commonwealth Bank changes ads following ASIC concern
Jan 16 :: The Commonwealth Bank of Australia has agreed to change some of its advertised loan comparison rates... read more

Inflation fall strengthens case for rate cuts
Dec 06 :: A leading unofficial measure of inflation eased last month due to falling food and fuel prices, strengthening... read more

Reserve Bank cuts domestic growth outlook
Nov 07 :: The Reserve Bank of Australia (RBA) has cut its forecast for economic growth and inflation in its latest quarterly... read more

Need Help Finding a Loan?
Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!
Loan Amount:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Personal Loan:
A personal loan is a loan provided to an individual or individuals (as opposed to a business) and that can be generally be used for a variety of purposes subject to the approval of the lender.

Quick Links: | Compare Loans | Bad Credit Loans | Finance For Self-employed | Low Rates | Free Loan Assessment