Australia: Headline CPI to tick up to 0.5% q/q in Q2 – ANZ

Analysts at Australia and New Zealand Banking Group (ANZ) offer their insights on the Australian Q2 CPI report due out this Wednesday at 0130 GMT.

Key Quotes:

“We expect Q2 inflation data to show that any acceleration in inflationary pressures remains very gradual. Headline inflation will likely tick up to 0.5% q/q, due to a rise in petrol prices, the seasonal increase in health insurance premiums and the regular tobacco indexation.  

Core inflation is expected to be steady at 0.5% q/q and 1.9% y/y, just below the RBA’s target band. Weak wage pressures and retail competition continue to weigh on core inflation.”