Business responds to CPI data-January

National Consumer Price Index (CPI) data remained unchanged in the December quarter, according to the State’s leading business membership organisation, Business SA.

Australian Bureau of Statistics (ABS) figures showed that the national CPI remained unchanged from the September 2011 quarter to the December 2011 quarter, for an annual rate of 3.1 per cent.

Adelaide’s CPI figures decreased 0.1 per cent in the same quarter, for an annual rate of 3.6 per cent.

Business SA Acting Chief Executive Officer, Brett Mahoney, said inflation had eased beyond expectations.

“This lower than expected inflation rate highlights the need for the Reserve Bank to cut interest rates again early next month,” Mr Mahoney said.

“The annual rate of inflation has decreased, confirming the pressures that remain for businesses and consumers.

“The Reserve Bank’s underlying measures of inflation remain within the target range and provide the scope for a rate cut in February.

“Rising costs, declining consumer sentiment and ongoing global economic volatility are all having a direct impact on confidence throughout the economy and this is concerning for local businesses.

“Recent economic data has indicated that the economy requires the Reserve Bank to step in and deliver further relief across all industry sectors.

“The most significant offsetting price falls were for fruit, vegetables and pharmaceutical products, while the largest increase was for holiday travel and accommodation.”