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Soft Australia inflation leave rates door ajar
Inflation has remain subdued in May leaving the door open for further interest rate cuts by the Reserve Bank. Inflation rose 0.2 per cent in May, lifted by the prices of fruit, vegetables, rents and books. It was offset by a drop in the prices of fuel, local holiday travel and accommodation, a private survey by TD Securities released today found. In the 12 months to May, inflation rose by 2.2 per cent, near the bottom the Reserve Bank's target band of 2 to 3 per cent. Inflation had risen 0.3 per cent in April and 0.2 per cent in March. TD Securities' head of Asia-Pacific Research, Annette Beacher, said while low ... (full story)