Australian consumer prices go up

Sydney, April 2 (IANS) Australia's consumer prices rose in March due to price rise in holiday travel and accommodation, alcohol and fuel, according to a survey released Monday.

The survey was released by investment dealer TD Securities and the Melbourne Institute of Applied Economic and Social Research.

The TD Securities-Melbourne Institute Monthly Inflation Gauge rose by 0.5 percent in March, following a 0.1 percent increase in February, reported Xinhua.

In the 12 months to March, the Inflation Gauge increased by 1.8 percent, the lowest annual inflation rate for two years and falling just below the Reserve Bank of Australia's (RBA) two to three percent inflation target band for the medium term.

Contributing to the overall change in March were price rises for holiday travel and accommodation, alcohol and tobacco, and automotive fuel, the survey found.

These rises were offset by price falls in meat and seafood, housing and clothes and footwear, TD Securities said.

The price of automotive fuel rose by 3.5 percent in March.

Head of Asia-Pacific Research at TD Securities Annette Beacher said the report indicated an overall decline in inflation rates.

"With this March report we have finalized our CPI (consumer price index) forecasts for the March quarter, and it is clear that while prices were sticky in the first few months of 2012, much of this can be accounted for by seasonality. Hence annual inflation rates are expected to continue to decelerate," she said in a statement Monday.

"We forecast headline inflation to increase by 0.7 percent, to be 2.2 percent higher than a year ago, the lowest annual outcome since the December quarter 2009."