Australian Economy Australian interest rates

Aussie inflation collapses

Wednesday, 31 January 2024

From the ABS just now. Aussie inflation is collapsing, with quarterly and annual undershooting consensus by 0.2%. Trimmed mean undershot by 0.1%

The tank:

Goods and services both:

Domestic demand is screwed:

Supermarkets on the run:

Rent is topping out, utility bill cuts are coming, and more tradable disinflation is in the pipeline.

The RBA is too tight and will be going into hard reverse.

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.