Fed: Inflation is moderate: Costello=3

AAP General News (Australia)
04-24-2007
Fed: Inflation is moderate: Costello=3

Mr Costello said the underlying measures of inflation have been decelerating over the
past nine months.

"It looks as if the underlying measures of inflation peaked in June 2006 and since
June 2006 the underlying measures have been decelerating," the treasurer said.

"Now the underlying measures of inflation show that we are firmly in our target band
which is two to three per cent."

The producer price index (PPI) was flat, which was good news, he said.

"Inflation is well-contained in the economy, the economy is growing," he said.

"There will be price pressures - we know that coming out of this very, very severe
drought - but in underlying terms, fundamentals are strong."

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KEYWORD: INFLATION COSTELLO 3 CANBERRA

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