Inflation flat at 2.1% as RBA likely to sit tight on interest rates

Prior to Wednesday's figues, both headline and underlying inflation had retreated for five consecutive months

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Australia's headline inflation rate remained well within the Reserve Bank of Australia's target band in October but the central bank is likely to want more proof price rises have moderated before it will cut interest rates.

Last month, the consumer price index was 2.1% higher than a year ago, holding steady at its lowest level since July 2021, the Australian Bureau of Statistics reported on Wednesday. That result compared with the 2.3% pace expected by economists and the 2.1% annual increase recorded for September.