Australia inflation slows to 4.3% in November, core down sharply

Australian consumer price inflation dropped to a near two-year low in November and core inflation also slowed sharply, a soft result that reinforced market expectations interest rates would not need to rise any further.

Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose at an annual pace of 4.3 per cent in November, down from 4.9 per cent in October and under market forecasts of 4.4 per cent.

A closely watched measure of core inflation, the trimmed mean, rose an annual 4.6 per cent, down sharply from 5.3 per cent in November. The CPI excluding volatile items and holiday travel slowed to 4.8 per cent, from 5.1 per cent.