Australia - December annual inflation gauge increases 3.8%

A gauge of Australia’s inflation remained above the central bank’s target range for a fourth straight month, led by higher costs for fruit, vegetables and fuel. Consumer prices increased 3.8% last month y-o-y, after advancing 3.9% in November, according to an index compiled by TD Securities Ltd and the Melbourne Institute. Prices increased 0.2% m-o-m. The survey was taken before floods devastated parts of northeastern Australia, which may force the Reserve Bank of Australia to accept higher inflation in the short term as food and commodity costs rise and growth slows in the disaster zone. (Bloomberg)