Lower food prices help keep CPI low

Lower food prices help keep CPI low

The Consumer Price Index out late this week is expected to show inflation rose slightly in the year ended December but that inflation pressures remain muted.

Inflation rate less than predicted

The consumers price index (CPI) has just been released, showing inflation rose just 0.3 percent for the June 2012 quarter, less than economists were predicting. This takes the annual rate to just 1 percent.

CPI increase expected

Inflation is expected to have risen sharply in the three months ended December because of higher petrol prices and a rise in GST to 15% on October 1.

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