Australian Q3 inflation data is due Wednesday 28 October 2020 - preview

Author: Eamonn Sheridan | Category: News

Due at 0030 GMT on Wednesday - Australia inflation data for the July to September quarter.

Headline
  • expected 1.5% q/q, prior -1.9%

For the y/y

  • expected 0.6%, prior -0.3%

Core inflation: Trimmed mean

  • expected 0.3% q/q, prior -0.1%

  • expected 1.1% y/y, prior 1.1%

Core inflation: Weighted median

  • expected 0.3% q/q, prior 0.1%

  • expected 1.3% y/y, prior was 1.3%

The RBA target band is 2 - 3% y/y, so not even close. The RBA have switched their policy on inflation to emphasise actual inflation instead of their own forecast. Given their forecasts have been woefully wrong for many many years this is a good thing. 

As for policy implications, if the trimmed mean estimate is close then the case for further easing at the RBA meeting next week is cemented even further.  
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