Australian monthly consumer prices up less than expected in Jan

A shopper touches a dress as she inspects clothes on display next to sale signs at a retail store in central Sydney, Australia, October 25, 2017. REUTERS/Steven Saphore

SYDNEY (Reuters) – A measure of Australian consumer prices rose by less than expected in January thanks to a drop in the cost of travel, clothing and fruit and vegetables, a promising sign inflation might be past its peak.

Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose 7.4% in the year to January, unwinding an alarming surge to 8.4% in December and well under market forecasts of 8.0%.

The ABS said prices excluding volatile fruit, vegetables and fuel rose 7.2% in the year to January, down from 8.1% in December.

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