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Australian CPI came in at 0.4% q-o-q headline vs. an expected 0.5%, and in y-o-y terms it was down from 2.1% to 1.9% and once again the ever-optimistic RBA finds itself with headline inflation below its 2-3% target band despite everything looking sunny, as far as it is concerned, explains the research team at Rabobank.

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“Moreover, the trimmed mean measure was 0.4% q-o-q and 1.8% y-o-y, down from 1.9%, and the weighted median was 0.3% and 1.7%, down from 1.9%. That’s three different servings of the same humble pie. Don’t expect any changes from the RBA, however. Their economic projections are all written by the kind of teenagers that wander off alone into haunted houses.”