The RBA target band for core inflation (data below following the headline results) is sustainably in a 2 to 3% band.
Headline 0.8% q/q
expected 0.8% q/q, prior 0.8%
- expected 3.1, prior 3.8% (lower expected mainly due to base effects)
Core inflation:
Trimmed mean 0.7% q/q
expected 0.5% q/q, prior 0.5%
expected 1.8% y/y, prior 1.8%
expected 0.5% q/q, prior 0.5%
expected 1.9% y/y, prior was 1.7%
The Australian dollar has been marked up a few points on the data result. Enough to shake out a few shorts. The higher inflation will add to market expectations that the RBA will be raising the cash rate before its promised 2024 at the earliest date.
