Australia's inflation rate grew ahead of expectations in September, easing pressures for the Reserve Bank of Australia to cut the rates next month.
The consumer price index rose 1.7% through the year to the September 2019 quarter, following a rise of 1.6% in the preceding quarter, according to the latest figures from the Australian Bureau of Statistics (ABS).
"Annual inflation remains subdued partly due to price rises for housing-related expenses remaining low, and in some cases falling in annual terms," ABS chief economist Bruce Hockman said.
Also read: What if interest rate cuts fuel house prices but nothing else?
Underlying inflation, which excludes items such as food and fuel items, clocked in at 1.6%, was still below the RBA's target of 2% to 3%.
CBA economist Kristina Clifton said the end could be near for low inflation.
"The percentage of the CPI basket rising at less than 2% has dropped to its lowest level since 2015, while underlying inflation annualised over the past six months has lifted a little too," she told ABC News.
However, she said more needs to be done to lift core inflation, which has been under the RBA's target range for almost four years.
"Fifteen quarters of misses are starting to feel like a long time, and it's likely to be several more years until inflation picks up to target," she said.
Despite this, she believes the central bank would put plans of further cuts on hold for the rest of the year.
"Given the three cash rate cuts since June, we think that the RBA will want to take some time to assess the impacts of lower interest rates before deciding on their whether to cut again," she said.
Read more: Investors not cashing in on rate cuts?
Rate cuts boosting sentiment
The latest Westpac Private Wealth survey showed that rate cuts in Australia and the US are boosting the sentiments amongst wealthy Australian investors.
While the investor property sentiment index remained in the red, an improvement was recorded during the third quarter of the year, from -29.8 points to -16.9 points.
"Signs of residential property price improvements domestically, in addition to interest rate cuts in Australia and the US, have encouraged a more positive outlook towards equities and property," Westpac Private Wealth general manager Cathy Yuncken told The Australian Financial Review.
The index, which surveyed 17,000 Australian investors with an investment portfolio worth $1m or more, shows that the majority believe a recession in Australia next year is unlikely.
However, investors remained concerned about the volatility in global trade markets.
