The RBA minutes:
Domestic Economic Conditions
Members commenced their discussion of the domestic economy by reviewing the latest inflation data. Headline and trimmed mean inflation had both been 1.8 per cent over the year to the September quarter, broadly in line with the Bank’s expectations.
Retail price inflation had been low as competitive pressures in the retail sector had continued to restrain price rises. Prices for volatile items, such as fruit and vegetables, had fallen by more than expected. The appreciation of the exchange rate over the preceding two years had contributed somewhat to falls in the prices of tradeable goods, while increases in rents had also been small, consistent with the strong growth in the housing stock. Although these factors had weighed on inflation, a number of factors had been working in the opposite direction, including increases in tobacco excise, utilities prices and new dwelling construction costs.
