CPI

Headline inflation went up by 1% in the September quarter. The annual rate is now at 1.3% - a low for the decade. The main upward pressure on the qtly figures came from a whopping 10.2% lift in utility charges. This was the biggest increase in 37 years of records.

Upward pressure also came from petrol, water, sewerage, loan costs and house prices. Downward pressure came from fruit and veg, financial services, electrical goods and pharmaceuticals.

The all important underlying inflation however remains a little stubborn with the 'trimmed mean measure rising 0.8% for the qtr (3,2% annual) and the weighted median also up 0.8% (3.8% annual)

It's likely tat the RBA will continue gradually removing the emergency element from the cash rate by lifting 25 points next week and again in December.