Australian inflation increases on the heels of new tax on pollution
October 25, 2012, 12:05 pm TWN
SYDNEY -- Australian inflation came in ahead of forecasts Wednesday, rising a seasonally adjusted 1.2 percent in the September quarter as electricity prices jumped following the introduction of a pollution tax.
The Australian Bureau of Statistics said the consumer price index was 2 percent higher on-year as power prices rocketed 15.3 percent.
Analysts had expected quarter-on-quarter inflation of 1.1 percent, and 1.7 percent over the year.
The spike in electricity prices followed the introduction on July 1 of an AU$23 per metric ton (US$24) tax on pollution linked to climate change. Australia's coal-fired power stations are big emitters.