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

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, 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.

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