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Australia's consumer prices rose in December 2011 from the previous month due to price rises for holidays and new dwelling purchases, a private survey released on Monday found.
The TD Securities-Melbourne Institute Inflation Gauge, a monthly survey by the investment dealer TD Securities and the Melbourne Institute of Applied Economic and Social Research, rose by 0.5 percent in December, following a decline of 0.1 percent in November.
The Inflation Gauge rose 2.4 percent in December from a year earlier after a 2.1 percent rise in November.
Price increases for holiday travel and accommodation, alcohol and tobacco, and new home purchases by owner-occupiers were mainly responsible for the rise in December, the survey found.
These were offset by falls in the cost of fresh food and clothes and shoes.
The price of fruit and vegetables fell by 4.7 percent in December, following a 2.1 percent decrease in November, while fuel prices remained unchanged.
TD Securities head of Asia-Pacific Research Annette Beacher said the data indicated a much weaker inflation trend for much of 2012.
She said TD Securities has finalized its consumer price index ( CPI) forecasts for the December quarter with the December report and it was clear that price pressures were well contained in the final months of 2011.
"We forecast headline inflation to increase by 0.2 percent, to be 3.3 percent higher than a year ago, the weakest quarterly CPI growth outcome since March quarter 2009," Beacher said.
"We also forecast underlying inflation to increase by 0.2 percent in the December quarter, lowering the annual rate to 2.1 percent, the softest outcome in the history of that series."
Official consumer price data from the Australian Bureau of Statistics is due by the end of January. |