SYDNEY: Australian inflation eased to 0.6 percent in the three months to September, official figures showed Wednesday, opening the way for a possible cut in interest rates next week.
The consumer price index (CPI) for the third quarter was down from 0.9 percent in the three months to June, the Australian Bureau of Statistics said.
Spurred by rising electricity and accommodation prices, consumer prices rose 3.5 percent from the same period a year earlier, down from 3.6 percent in the year to June, the ABS said.
The quarterly rise was in line with economists' expectations, but the rate remained above the Reserve Bank of Australia's two to three percent target band.
The numbers will fuel speculation over whether the RBA board will keep interest rates on hold at 4.75 percent when it meets next Tuesday or move to lower them.
The ABS said the most significant price rises were for electricity (up 7.8 percent), international holiday travel and accommodation (up 5.1 percent), rents (up 1.2 percent) and property rates and charges (up 5.2 percent).
The Aussie dollar slipped on the news, dropping from 104.32 US cents to 103.63 US cents.
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