TD Securities monthly inflation jumps

Sunday 13 January 2013

TD Securities monthly inflation jumped to 0.4% in December following deflation of -0.1% in November. The annual rate came in at 2.4%. The jump was based largely around petrol and rent:

Here is the month or month chart:

As well as year on year:

This gauge has a reasonable correlation with official inflation and adds to the growing consensus that rate cuts are done for now. An argument I agree with given the iron ore surge.

(And no, I will not be removing my clothes, there will be no need!).

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.