Fed: Inflation up 0.9 pct, rate rise almost certain next month=2

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Fed: Inflation up 0.9 pct, rate rise almost certain next month=2

Contributing most to the quarterly increase were rises in the cost of overseas holidaytravel and accommodation (up 7.4 per cent), pharmaceuticals (11.4 per cent), house purchases(0.7 per cent) and secondary education fees (6.4 per cent), the ABS said.

There also were increases in the cost of domestic holiday travel and accommodation(2.4 per cent), tobacco (2.1 per cent), motor vehicles (0.9 per cent), insurance services(2.6 per cent), tertiary education (3.0 per cent) and cakes and biscuits (3.8 per cent).

"Partially offsetting these increases were falls in the cost of vegetables (down 2.8per cent), furniture (1.4 per cent), women's outerwear (1.7 per cent) and soft drinks,waters and juices (1.8 per cent)," it said.

AAP jph/pw/bwl

KEYWORD: INFLATION 2 CANBERRA