The Australian consumer price index (CPI) rose 0.8 percent in the December quarter 2013, following a rise of 1.2 percent in the previous quarter, the Australian Bureau of Statistics reported on Wednesday.

The official CPI came in higher than expected, taking the annual inflation rate to 2.7 percent, up from the 2.2 percent in the year to the September quarter.

Economists had forecast a rise of 0.5 percent in the December quarter and an annual rate of 2.5 percent.

The bureau said the most significant price rises in the December quarter were for domestic holiday travel and accommodation, fruit, vegetables, new dwelling purchase by owner- occupiers, international holiday travel and accommodation and tobacco while the most significant offsetting price fall was for automotive fuel.

Economists say the inflation figures for the December quarter 2013 reduce the chance of further interest rate cuts. Endi

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