Following the below expectations Australia’s Q3 2018 CPI readings, today’s inflation figures for the Q4 showed a mixed picture, with the headline figures missing expectations.
The core figures matched expectations, keeping the annualized inflation rates below the Reserve Bank of Australia’s (RBA) 2-3 percent target range.
Main Headlines
Q4 CPI headline q/q +0.5% vs 0.4% exp and 0.4% prior.
Q4 CPI headline y/y +1.8% vs 1.7% exp and 1.9% prior.
RBA trimmed mean q/q +0.4% vs 0.4% exp and 0.4% last.
RBA trimmed mean y/y +1.8% vs 1.8% exp and 1.8% last.
December Key Figures
The All Groups CPI
- Rose 0.5% this quarter, compared with a rise of 0.4% in the September quarter 2018.
- Rose 1.8% over the twelve months to the December quarter 2018, compared with a rise of 1.9% over the twelve months to the September quarter 2018.
Overview of CPI Movements
- The most significant price rises this quarter are tobacco (+9.4%), domestic holiday travel and accommodation (+6.2%), fruit (+5.0%) and new dwelling purchase by owner-occupiers (+0.4%).
- The most significant price falls this quarter are automotive fuel (-2.5%), audio visual and computing equipment (-3.3%), wine (-1.9%), and telecommunications equipment and services (-1.5%).
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