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:
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: