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Australian dollar bounces back on CPI figures
Consumer prices rose by 0.5 per cent in the June quarter, broadly in line with market expectations. The quarterly growth, compared with 0.6 per cent in the preceding six months, equates to an annual rate of 3 per cent, up 0.1 percentage point at the end of the March quarter. Despite rising consumer prices, the Reserve Bank of Australia is likely to remain sanguine about current inflation, focusing instead on the underlying result, which came in at 0.6 per cent for the quarter and 2.7 per cent year on year. Economist had forecast a headline figure of 3 per cent and 2.7 per cent for the underlying rate. Analysts have ... (full story)