Home Australia: Still a long wait for inflation to return to the band – Westpac
FXStreet News

Australia: Still a long wait for inflation to return to the band – Westpac

Justin Smirk, analyst at Westpac, points out that Australia’s December Quarter CPI printed 0.5%qtr, compared to the market median of 0.4% and Westpac’s 0.3%, while the annual rate eased back to 1.8%yr from 1.9%yr in Q3.

Key Quotes

“The average of the core measures, which are seasonally adjusted and exclude extreme moves, rose 0.4%qtr meeting market expectations. In the quarter, the trimmed mean gained 0.43% while the weighted median lifted 0.36%. The annual pace of the average of the core measures printed held the 1.8% pace from Q3 following 1.8%yr in Q2.”

“Incorporating revisions, the two quarter annualised growth in core inflation is only 1.5%yr well below the bottom of the RBA target band and the slowest pace since December 2016.”

“Our preliminary estimate for Q1 2019 CPI is 0.1%qtr /1.4%yr for headline and 0.5%qtr/1.8%yr for core.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.