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In the view of the analysts at Australia and New Zealand Banking Group (ANZ), the Australian headline and core CPIs, both are likely to arrive softer in the first quarter.

Key Quotes:

“A sharp fall in petrol prices is the largest negative for the headline figure, as in the prior quarter.  

Our forecast for core inflation is broadly consistent with what the RBA published in its February Statement on Monetary Policy.  If core inflation for the quarter comes in at 0.3% or below, a rate cut in May is a real possibility, in our view.”