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Following above-forecasts Australia’s  Q4 2019 CPI  readings, today’s inflation figures for the Q1  showed a bleak picture, with both the headline and core 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

Q1 CPI headline q/q +0.0% vs.  0.2% exp and 0.5% prior.

Q1 CPI headline y/y +1.3% vs. 1.5% exp and 1.9% prior.

RBA trimmed mean q/q +0.3%  vs. 0.4% exp and 0.4% last.

RBA  trimmed mean y/y +1.6%  vs. 1.7% exp and 1.8% last.

March Key Figures

The All Groups CPI

  • Was flat (0.0%) this quarter, compared with a rise of 0.5% in the December quarter 2018.
  • Rose 1.3% over the twelve months to the March quarter 2019, compared with a rise of 1.8% over the twelve months to the December quarter 2018.

Overview of CPI Movements

  • The most significant price rises this quarter are vegetables (+7.7%), secondary education (+4.2%), motor vehicles (+2.4%) and medical and hospital services (+1.3%).
  • The most significant price falls this quarter are automotive fuel (-8.7%), domestic holiday, travel and accommodation (-3.8%) and international holiday, travel and accommodation (-2.1%).