Fed: Inflation figure due out today

AAP General News (Australia)
04-26-2006
Fed: Inflation figure due out today

CANBERRA, April 26 AAP - Economists expect today's March quarter inflation figure will
not create pressure on the Reserve Bank to raise interest rates.

The Australian Bureau of Statistics will release the consumer price index (CPI) for
the March quarter today.

The figure will be the key to any decision on interest rates by the Reserve Bank board,
which will hold its monthly meeting in Sydney on Tuesday and release its rate advice next
Wednesday.

Analysts expect the CPI to have risen 0.8 per cent in the March quarter and 2.9 per
cent annually - marginally within the RBA's target band of two to three per cent.

But there are fears that rising petrol prices and a hike in import costs may eventually
flow through to inflation, triggering a rate rise later in the year.

Interest rates have remained steady since March last year.

AAP pjo/pe/de

KEYWORD: ECONOMY DAYLEAD

2006 AAP Information Services Pty Limited (AAP) or its Licensors.