Analysts at TD Securities explained that they are looking for Q2 headline CPI to lift by +0.6%/q.
Key quotes:
“We look for Q2 headline CPI to lift by +0.6%/q, and as fuel jumped by +7%/q, annual tradable inflation may at last print positive.
We expect a seasonal boost for Health, while Housing-related prices continue to edge higher.
The two core measures (trimmed mean and weighted median) are both expected to lift by +0.55%/q, leaving average annual underlying inflation a shade under 2%/y.
This report is unlikely to shake the neutral RBA given that the prior upgrade to history (+ ¼%pt from 1 ¾% to 2%/y) was all-but ignored by the RBA and the markets.”
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