- The ‘headline’ result is the q/q CPI for Q3: expected is +0.8%, prior was +0.4%
- For the y/y, expected is 1.8%, prior 2.4%
Australian CPI q/q change – past results
- The ‘trimmed mean’ (which is the measure the RBA pays most heed to): expected 0.6%, prior 0.5% q/q
- Trimmed mean y/y: expected is 2.1%, prior 2.2%
Australia trimmed mean CPI past results
The trimmed mean is the ‘core’ measure that the RBA heeds closely. A result at the 0.6% expected for the trimmed mean puts the y/y at 2.2%, well within the RBA’s 2 – 3% band that it targets.
The thing to look out for is any result that is well away from expectations. If the result comes in higher, than that most likely cements the idea that further easing from the RBA is off the table in the near term. If the result comes in lower than expected, then the RBA continues to have scope to ease, should they deem that appropriate (and currently they are expessing the view of a wait-and-see approach to further cuts, they are more neutral now than they have been so far in 2013).
