• For the m/m change, prior was +0.2%
  • For the y/y comes in at +2.8% ( prior was +2.7%.)
  • Trimmed Mean +0.5% m/m, and +3.1% y/y

We only get official inflation data in Australia once a quarter, so alternative measures of inflation like this TD Securities/Melbourne Institute (MI) Inflation Gauge are watched. Just over a weak ago we got a CPI result tamer than expected: Australia Q1 2014 CPI – all the results & what it means for the Australian dollar and more here (Australian CPI – analysts react)

AUD rose a little earlier (perhaps related to some of the Chinese RRR headlines):

-

This higher inflation data from TD/Melbourne Institute is a supportive input for the AUD also, the ‘trimmed mean’ y/y is higher than the RBA’s target band (Note of course, this is not the official inflation figure). Indeed, TD have been emboldened by the result, looking for rate rises …

  • “This first taste of the June quarter reveals an alarming jump in headline and trimmed mean inflation, of which only a portion can be attributed to seasonality”
  • “This unwanted inflation, combined with a robust housing sector and signs that prior savings are re-fuelling consumption, suggests that the case for holding the cash rate at record low levels is no longer there”

Comments from Annette Beacher, economist at TD Securities.