A private gauge of inflation rose above target in December, with an accompanying report warning consumer prices are set to rise due to floodwaters in Queensland affecting food costs.
The TD Securities-Melbourne Institute measure of consumer price inflation rose by 0.2% in December, following a 0.4% rise in November. The index is now 3.8% higher than it was during December 2009 – above the RBA’s target of 2-3%.
“Our monthly gauge confirms that uncomfortable inflation pressures emerged in the final months of 2010,” TD head of Asia Pacific research Annette Beacher said in a statement.
The factors which contributed most to the increase were prices for fuel, fruit and vegetables, holiday travel and accommodation. Price decreases were recorded in AV equipment, sport and other recreation, books and newspapers and magazines.
Beacher predicts damages caused by the floods in Queensland will affect food prices during the first quarter of 2011.
“As the RBA has already taken a pre-emptive stance against future inflationary pressures by shifting to a restrictive monetary policy stance late last year, we expect the RBA to remain on the sidelines until May,” she said.
The total value of owner-occupied housing commitments rose by a seasonally adjusted 2.9% during November, according to the latest figures from the Australian Bureau of Statistics.
Personal finance commitments were up by 2.2%, with revolving credit commitments up 2.5% and fixed lending commitments up by 2%.
Total commercial finance commitments rose by 1%, with fixed lending commitments up 3.8% and revolving commitments down 4.9%. Leasing finance commitments were up 0.5%.
Agricultural chemical supplier Nufarm has said it will defend itself in a new class action brought on by shareholders who allege the company engaged in misleading conduct regarding its 2009-10 financial result.
“Nufarm Limited denies any and all allegations of wrongdoing, and will defend the proceedings vigorously,” the company said in a statement.
Slater & Gordon is representing the shareholders, who all state that when the company forecast net operating profit of between $55 million and $65 million, it engaged in misleading and deceptive conduct due to earlier guidance being much higher.
The Australian sharemarket has opened flat this morning despite following a mostly positive lead overseas on the weekend.
The benchmark S&P/ASX200 index was down 16 points or 0.35% to 4784.5 at 12.20 AEST, while the Australian dollar was also down to US99.08c.
AMP shares gained 0.2% to $5.19, while NAB shares dropped 0.4% to $24.28. Westpac fell 0.2% to $22.44 as Commonwealth Bank lost 0.1% to $51.34.
James Hardie Industries SE has said it will not specifically comment on ASIC’s decision to appeal a court decision overturning bans on several of the company’s former directors.
The corporate regulator has now filed applications in the High Court to have the ruling of the NSW Court of Appeal overturned.
The company said today it had seen the application. “The Company has not made an application for special leave to appeal,” it said.
“The company does not propose to comment further upon the decisions or applications for special leave to appeal.”
Airline Qantas has now suffered another engine disaster, with a Boeing 747 sustaining a “contained turbine blade failure” on the weekend.
The company has said the incident is unrelated to the A380 incident, which saw the airline’s entire fleet of Airbus A380 craft grounded.
A spokesperson has said the two incidents are unrelated and a replacement engine will be fitted shortly.
Spanish construction group ACS has now won regulatory approval in the European Union to takeover German group Hochtief.
“In the specific markets of construction services, facilities management services and motorway concessions where the companies have overlapping activities, these are very limited and do not lead to any competition concerns,” the European Commission said in a statement.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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