TD monthly inflation soft

From Forexlive:

TD Securities Inflation/Melbourne Institute (MI) Inflation Gauge for April. For the m/m, +0.3%

prior was +0.4%

For the y/y, +1.4%

prior was +1.5%

Trimmed mean +1.4% y/y

prior +1.6% y/y

Note … Slowing in non-tradable prices (1.8% y/y from 2.5% prior month) … this is significant as inflation here has been high in recent years

Comment from Annette Beacher, chief Asia-Pac macro strategist at TD Securities:

“For the RBA Board meeting, the combination of sub-trend economic growth, lower terms of trade and a low inflation environment all tilt the odds towards the RBA delivering a cut to 2 percent”

Here Westpac’s chart pack. If anything, the outlook is for price weakening.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.