ASX up 0.16% near noon: Inflation in Aus decreases

Market Reports

by Peter Milios

Inflation in Australia decreased to 2.7% in August, down from 3.5% the previous month, marking the first instance since mid-2021 that consumer price data has fallen within the Reserve Bank of Australia’s (RBA) target band of 2% to 3%. This decline is largely attributed to federal government energy bill rebates, resulting in a record annual drop of 17.9% in electricity prices, according to the Australian Bureau of Statistics. Despite this positive trend, the RBA maintained the cash rate at 4.35%, indicating a need for more evidence of sustainable inflation reduction. While central banks globally, including the US Federal Reserve, have initiated easing cycles, the RBA has ruled out any rate cuts for the remainder of the year, although bond traders are still anticipating a potential decrease by Christmas.

At 11:45am, the S&P/ASX 200 is 0.16 per cent higher at 8,154.80.

Best and worst performers

The best-performing sector is Materials, up 2.77 per cent. The worst-performing sector is Financials, down 1.4 per cent.

The best-performing large cap is Mineral Resources (ASX:MIN), trading 5.67 per cent higher at $41.38. It is followed by shares in Fortescue Ltd (ASX:FMG) and Lynas Rare Earths Ltd (ASX:LYC).

The worst-performing large cap is Premier Investments Limited (ASX:PMV), trading 7.93 per cent lower at $31.00. It is followed by shares in Pro Medicus Limited (ASX:PME) and Telix Pharmaceuticals Ltd (ASX:TLX).

Commodities and the dollar

Gold is trading at US$2681.60 an ounce.

Iron ore is 5.9 per cent higher at US$94.60 a tonne.

Iron ore futures are pointing to a 5.58 per cent rise.

One Australian dollar is buying 68.84 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?