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July 07: CPI index ? harbinger of rising rates?

by Staff Reporter•Friday, 27 Jul 2007•7 minute read

The headline CPI (consumer price index) rose 1.2 percent this June quarter, sparking concern among economists that interest rates could soon head north.

As the official measure of Australian inflation – and a key indicator for dictating the Reserve Bank of Australia’s (RBA) decisions on setting interest rates – this quarter’s CPI hike does not bode well.

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