Australia's low, low inflation rate for Q1 - RBA will keep the cash rate at record lows for years

The CPI data for Q1 2021 is here:

• Australia inflation data, Q1 2021 Headline CPI 0.6% q/q (expected 0.9%)

And, response in FX:

• AUD drop following below expectations CPI readings

The 'trimmed mean' core inflation measure came in at the lowest ever on record (my graph on the trimmed mean goes back to the early 80s, maybe it was higher before that though).

Remarks from CommSec (via a Reuters report):

• "Bottom line: the Reserve Bank will maintain its resolve and keep the cash rate at record lows until 2024"
• "There is still spare capacity in the job market, so there is no sign as yet of generalised wage pressures"
• "The RBA doesn't expect wage pressures to emerge until the jobless rate is closer to 4% - clearly still some way off"