TD Securities/Melbourne Institute (MI) Inflation Gauge for December.

FLAT at 0.0% change for the m/m

  • prior was +0.1%

+1.5 % y/y

  • prior +2.2% y/y

The ‘trimmed mean’ reading is +0.1% m/m and +1.7% y/y

Inflation not a problem in Australia.

If you are in the camp of thinking there could well be a rate cut from the Reserve Bank of Australia (RBA) at their next meeting (February 4) then you are probably keenly awaiting the next official inflation reading, due on January 28.

MNI journalist Sophia Rodrigues has been writing on the potential for a February cut on a few occasions:

And there are a few bank analysts in that camp as well (but by no means a majority … not even close … I’ll try to post an update on current outlooks today).

I have pointed out many times before that the CPI reading on January 28 is likely to be low … digging into history …. here it is:

We get the next inflation numbers from Australia way off in January next year (the 28th).
So, we got 3 months to prepare for that … but here is an early heads up on what the result will be on a y/y basis .. it’ll be even lower!
Why?

The result from TD here today is an early heads up for a low reading next week.

Oh, and if you are in the camp of no rate cut from the RBA in February (like me), you are with the majority of analysts at banks. (Is that a good thing?

;-)

)