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The December quarter Consumer Price Index showed inflation rising by 0.2 per cent to 1.7 per cent for the year, which the federal treasurer described as a “modest” rise in a statement issued yesterday.
“Petrol prices have come down significantly, with the average price sitting at around 111 cents per litre – saving the typical Australian family over $22 per week compared with the middle of last year,” Mr Hockey said.
“Electricity prices saw the largest fall on record in the September quarter and have remained flat this quarter.
“This is good news for Australian families to start 2015.”
HSBC also welcomed the figures, issuing a communication from its global research department.
“Today's underlying inflation numbers surprised the market on the upside and support the view that local demand is holding up fairly well, as the economy rebalances away from mining-led growth,” HSBC said.
“The solid Q4 underlying inflation print also suggests that a near-term RBA rate cut is unlikely.”
The communication also anticipates that declining oil prices may result in a further decline in headline CPI inflation, but added that the impact on inflation in terms of underlying measures is unclear.