Australia’s inflation rate eased to 4.9% in October, reducing likelihood of another rate rise as weak consumer spending reduces likelihood of another interest rate rise

Consumer price index rose last month at an annual rate of 4.9%, which is lower than economists had forecast

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Australia’s inflation rate has eased sharply in October as weak consumer spending made it less likely the Reserve Bank will inflict another interest rate rise on the economy.

The consumer price index rose at an annual clip of 4.9% last month compared with a 5.6% pace in September alone, the Australian Bureau of Statistics said on Wednesday. Economists had expected CPI to come in at 5.2%.

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