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Subdued Australia inflation strengthens case for steady rates
An unofficial monthly measure of inflation shows that consumer prices moderated from July to August. The TD Securities - Melbourne Institute Monthly Inflation Gauge rose by 0.1 per cent in August, following an increase of 0.2 per cent in July. In the year to August, the Inflation Gauge increased by 1.7 per cent. The core inflation figure — which excludes price movements for volatile items — increased by 0.2 per cent in the month, with the annual rate standing at 2 per cent. That is at the bottom of the RBA's comfort zone for inflation, of between 2 and 3 per cent. The survey revealed that during the month, there ... (full story)