The price of Australian consumer goods and services rose 0.5 per cent in the September quarter.

The consumer price index (CPI), a key measure of inflation, rose 2.3 per cent in the year to September, according to the Australian Bureau of Statistics. 

Australian National Retailers’ Association (ANRA) CEO, Anna McPhee, said the today’s middle of the road inflation number in the year to September 2014 demonstrates inflation is well contained.

“Retailers hope this will provide further evidence for the Reserve Bank of Australia to continue the current period of interest rate stability into 2015,” McPhee said.

McPhee said the result should provide consumers with some level of confidence as ahead of the Christmas shopping period, the busiest time of year for the retail sector.

“The retail sector continues to play a major role in putting downward pressure on inflation with inflation falling one per cent across the clothing and footwear category in the September quarter.

“Furnishings, housing equipment, and services rose 0.4 per cent for the quarter and the year to September, well below the quarterly and annual rate of inflation.

“Despite inflation rising in the food and non-alcoholic beverage category (up 1.2 per cent) this quarter, it is likely factors such as seasonality has impacted prices in the third quarter and we wouldn’t expect this trend to continue.”