TD Securities-Melbourne Institute inflation for December was out this morning and shows a month on month bounce of 0.5%. However, year on year remains contained at 2.4%.
Here is the MOM chart:
And YOY:
As well as, myriad data:
The report indicates that:
Contributing to the overall change in December were price increases for holiday travel and accommodation(seasonal), alcohol and tobacco, and new dwelling purchase by owner-occupiers. These were offset by falls infruit and vegetables, clothing and footwear, and meat and seafood. The price of fruit and vegetables fell by 4.7per cent in December, following a 2.1 per cent decrease in November, while fuel prices were unchanged.
Not sure how the last item computes given the stunning weakness in new home purchases. Anyways, much of this looks seasonal and not a cause for concern at this stage. Full report below:
