The Australian Bureau of Statistics has released June quarter producer prices and the news is good for inflation:
JUNE KEY FIGURES
Mar Qtr 14 to Jun Qtr 14 |
Jun Qtr 13 to Jun Qtr 14 | |
STAGE OF PRODUCTION |
% change |
% change |
| ||
Final demand (excl. exports) |
-0.1 |
2.3 |
Domestic |
0.1 |
1.9 |
Imports |
-1.5 |
6.4 |
Intermediate demand |
-0.5 |
2.7 |
Domestic |
-0.1 |
2.3 |
Imports |
-2.7 |
6.8 |
Preliminary demand |
-0.8 |
3.0 |
Domestic |
-0.4 |
2.5 |
Imports |
-2.9 |
6.6 |
|
The year on year figures are still up strongly on imports but it’s clear that the tradable inflation surge unleashed last year by the tumbling dollar is passing “pig in the python” style, with the quarterly readings wall-to-wall deflation, just as expected.
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As I said of the recent CPI hysteria, the RBA can cut if it wants to but it needs APRA to get off its arse with macroprudential to collar house prices.
The dollar reversed all of its China PMI gains and is at the lows of the day.