Headline inflation ticks up to 2.3 in Nov, from 2.1 before
Core slows to 3.2, closer to RBA39;s target band of 23
Electricity prices jump, but only due to timing of govt subsidies
New dwelling costs rose an annual 2.8, slowest since mid2021

SYDNEY, Jan 8 Reuters Australian consumer price inflation crept up from threeyear lows in November as electricity costs jumped, but a drop in core inflation still bolstered the case for a cut in interest rates as early as next month.

The Australian dollar slipped 0.34 to 0.6214, while threeyear bond futures reversed earlier losses to be up 4 ticks to 96.11. Swaps now imply a 64 chance for a rate cut in February, compared with 50 before.

Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index rose at an annual pace of 2.3 in November, up from 2.1 the previous month and just above market forecasts of 2.2.

Electricity prices jumped 22 in November but that was largely due to the timing of government rebates. Electricity subsidies from the federal and state governments still lowered prices by 21.5 from a year prior.

More importantly, the trimmed mean a closely watched measure of core inflation fell to an annual 3.2 from 3.5, edging closer to the Reserve Bank of Australia39;s target band of 2 to 3.

The good news is that measures of core inflation suggest that underlying price pressures are indeed easing in earnest, said Abhijit Surya, the Australia and New Zealand economist for Capital…