Inflation CPI

The Reserve bank of Australia Governor and the Treasurer have agreed that the appropriate target for monetary policy in Australia is to achieve an inflation rate of 2–3 per cent, on average, over time. This is a rate of inflation sufficiently low that it does not materially distort economic conditions.
Consumer prices in Australia rose 1.8 percent through the year to the September quarter of 2017, following a 1.9 percent in the second quarter and missing market consensus of a 2.0 percent rise. It was the lowest inflation rate since the December quarter 2016. Inflation Rate in Australia averaged 5.05 percent from 1951 until 2017, reaching an all-time high of 23.90 percent in the fourth quarter of 1951 and a record low of -1.30 percent in the second quarter of 1962. The Inflation CPI figure peaked during the fourth quarter of 2011 and fourth quarter of 2014 at 3.0 percent, reached a low reading of 1.0 percent during the second quarter of 2016, and ever since it has been in an uptrend, although it peaked again during the first quarter of 2017 at a rate of 2.1%.
The recent figure of 1.8% indicates that there are not any significant inflationary pressures in the economy of Australia, plus the reading is still below the target rate of 2.0%-3.0% set by the Reserve Bank of Australia. This may signal that future interest rates are not probable in the near future, which may weigh either neutral or even probably slightly negative for the Australian Dollar in the 2018.