The Australian January to March inflation data is here from earlier:
Inflation picked up in the quarter to a near 6 year high, but the core measures were both below the lower bound of the RBA target band (whi9ch is 2 - 3% over the course of a cycle).
Any comfort the Reserve Bank of Australia might derive for the measures at least moving towards their target will be fleeting indeed, though, the picture ahead for Q2 is for lower, perhaps into outright deflation.
From March much of the economy was shut down, the effects will be felt in April and longer. Oil prices plummeted also, that'll weigh on the rate also. Unemployment will surge, consumer spending will crash,
NAB:
- "forecast for Q2 inflation is for a 1.9% decline in the headline CPI
- would see annual deflation of 0.4%"
ANZ:
- "RBA's actions are already consistent with the prospect of very weak annual inflation later this year
- likely large drop in aggregate demand
- and a sharp rise in unemployment put downward pressure on inflation"
