Consumer prices in Australia advanced 0.5 percent on quarter in the fourth quarter of 2016, the Australian Bureau of Statistics said on Wednesday.
That was beneath expectations for 0.7 percent, which would have been unchanged from the previous three months.
The most significant price rises in Q4 were tobacco (+7.4 percent), automotive fuel (+6.7 percent) and restaurant meals (+1.1 percent).
These rises were partially offset by falls in furnishings, household equipment and services (-0.8 percent) and communication (-0.8 percent).
Vegetables rose 2.5 percent in Q4 as adverse weather conditions in major growing areas affected supply for particular vegetables (potatoes, capsicums, broccoli and cauliflower). Offsetting these rises are price falls for salad vegetables, tomatoes, lettuce and celery.
The most significant offsetting price falls in Q4 were international holiday travel and accommodation (-2.6 percent), accessories (-5.1 percent) and waters, soft drinks and juices (-3.2 percent).
On a yearly basis, inflation gained 1.5 percent -0 again shy of forecasts for 1.6 percent but up from 1.3 percent in the three months prior.
The Reserve Bank of Australia's trimmed mean was up 0.4 percent on quarter and 1.6 percent on year, while the weighted median gained 0.4 percent on month and 1.5 percent on year.
Also on Wednesday, Westpac Bank said that its leading economic indicator for the Australian economy jumped in December, rising 0.44 percent last month.
That follows the upwardly revised 0.03 percent gain in November (originally 0.02 percent).
The six-month growth rate climbed from flat in November to 1.28 percent in December; in all, the index has been above trend in five straight months.
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