World Economy

Australia’s Economy Still Struggling

Australia’s Economy Still StrugglingAustralia’s Economy Still Struggling

Soaring electricity and gas prices in Australia have failed to push up overall inflation across the country in a sign the national economy is still struggling.

Figures from the Bureau of Statistics showed overall consumer prices lifted by 0.6% in the three months to the end of September, giving the country an annual inflation rate of 1.8%, AAP reported.

Underlying inflation, which strips out one-off price increases, was lower at 0.35% for the quarter and 1.85% annually. The weaker figures had an immediate impact on financial markets with the Australian dollar slipping to $77.5 cents as expectations of an interest rate rise from the Reserve Bank receded.

As expected, electricity and gas prices rose sharply in the quarter. Gas and household fuels were up by 5.2% while electricity prices jumped by 8.9% in a development the bureau said was due to higher wholesale prices.

Tobacco prices jumped by 4.1%, due to higher taxes, while international travel costs increased by a similar amount.

But there were significant falls in daily costs .Vegetable prices tumbled by 10.9% on the back of a lift in supply to good growing conditions. Petrol prices edged down by 2.3% while telecommunications equipment and services dropped by 1.5%.

In Perth, prices lifted by 0.5% which took the annual inflation rate to 0.8%.

There’s more to Australia than good weather and a famous laid-back lifestyle—the country now powered through 25 years without tasting economic recession.

The quarter of a century milestone means Australia now has the longest period of recession-free growth of any developed country ever.

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