RBA needs to maintain interest rates: REIA

The Reserve Bank of Australia’s consumer price measures of inflation are stable and well within its target zone of 2% to 3%, according to the September 2013 quarter Consumer Price Index (CPI).

The consumer price index rose by 1.2% and annual inflation rate is now 2.2%.

The analytical series of trimmed mean and weighted median increased by 0.7% and 0.6% respectively for the September quarter 2013, compared to increases of 0.6% for both in the June 2013 quarter.

“The annual changes for the trimmed mean and for the weighted median were 2.3% for both and compare to the changes for the twelve months to the June quarter 2013 of 2.3% and 2.5% respectively,” says REIA president Peter Bushby.

The housing group increased by 2% in the September quarter, compared to 0.6% in the June 2013 quarter.

The annual rate increase of 4% is down from 5.3% to the year to June.

The main increases in the September quarter were water and sewerage, an increase of 9.9%, and property rates, an increase of 7.9%.

Of the year to September 2013, the largest increase in the housing group was for electricity at 6.1%.

Rents increased by 3.2% for the year.

“With inflation well under control and a subdued economy, it’s appropriate that the RBA Board maintains interest rates at their present level when it meets on Melbourne Cup Day,” says Bushby.