Electricity prices fell by 17.3% in the latest quarter, while automotive fuel also fell 6.7%, increasing the chance of a near-term interest rate reductions

Australia’s headline inflation sank to its lowest level in more than three years in the September quarter, as lower energy prices and elevated interest rates eased price pressures in the economy.

The annual consumer price index for the July-September period was 2.8%, or the lowest since the March quarter of 2021, the Australian Bureau of Statistics reported on Wednesday.