This data will be very welcome at the Reserve Bank of Australia - headline and underlying inflation both falling in Q4 of 2023.

Australia q4 cpi 2023 inflation 2

As well as 'trimmed mean' there is another measure of core inflation, the 'weighted median':

0.9% q.q

  • vs. 1.0% expected and prior of 1.3%

4.4% y/y

  • vs. 4.5% expected and 5.2% prior


This data is strongly indicative that the Reserve Bank of Australia rate hike cycle is over.

The RBA next meets on February 5 and 6. I expect it'll be an on hold decision.