Westpac: Q2 CPI to bounce

Friday, 20 July 2012

Westpac has an interesting note out that is forecasting a big bounce in Q2 CPI to 0.7% on rebounding food prices. Still not overly high in the scheme of things but a decent rebound.

My own view is we will see weaker but I don’t think the CPI is all that relevant this quarter anyway. For whatever reason, the RBA has backflipped on its easing agenda for now and even a modest print won’t budge them (not that it should, my critique is only about recent rhetoric not decisions).

Er 20120719 Bull Cpi Preview June

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.