TD Securities – Melbourne Institute (TDMI) Monthly Inflation Gauge has been released for the month of July, which confirms the lack of inflationary pressures across the Australian economy.
Over the month of July, inflation rose by only 0.2%, which follows June’s -0.2% fall:
In the 12 months to July, inflation is up only 1.5% – well below the Reserve Bank of Australia’s (RBA) inflation target of 2% to 3% through the cycle – and is decelerating on an annual basis. It is also the lowest annual inflation print since October 2009:
Clearly, there is nothing in the recent inflation numbers to prevent the RBA from cutting official interest rates if and when it sees fit; although the recent run of positive economic data suggests that it will remain on hold for now.
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
