The RBA will dismiss today's high headline inflation with one word (its cool, not a four-letter one)

The Q2 inflation data was earlier from Australia:

• Australia Q2 CPI headline rate 3.8% y/y (vs. expected 3.8%)

That headline number is hot, but the core measures (trimmed mean 1.6% y/y and weighted median 1.7% y/y, details in that post) are not.

ING have issued their take on the data, in summary:

• Central Bankers' favourite "T" word, "transitory" will likely be dusted off again after Australia's 3.8%YoY inflation print for the second quarter of 2021.
• However, almost 2 percentage points of this inflation increase is entirely due to base effects.
• ... trimmed means and weighted median inflation measures ... show a much more moderate pick up. So underlying inflation is rising. It just isn't rising very fast. And it still looks quite subdued relative to the RBA's 2-3% longer-term target, which as we all now know, they aren't too worried about exceeding in the short-term.

AUD has taken a very tiny bid from the earlier news on an increase in support payments for workers and business:

• Australian PM Morrison says support payments for workers impacted by lockdown to increase