CPI soft

Wednesday, 23 January 2013

The December quarter CPI is in and it is no surprise to see a weak economy producing weakening price growth, just 0.2% quarter on quarter, half consensus, and 2.2% year on year, below the 2.4% consensus. Quarter on quarter:

Year on year:

The trimmed mean and weighted median both undershot consensus by a point and came in at 2.3%:

There is just nothing to worry about here.

Still, won’t effect the RBA. No cut in February. UE will return with the detail.

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.