TD Securities monthly inflation is out and is still weak, rising 0.2 this month to take the yearly gauge to 2.1 per cent. The trimmed mean rose by 0.2 per cent, and was 2.4 per cent higher than from a year ago.
Annette Beacher, the head of Asia-Pacific Research at TD Securities, says she expects headline inflation to lift by 0.6 per cent in the September quarter, and be 1.6 per cent higher than a year ago due to favourable base effects.
She added that underlying inflation was forecast to grow by 0.5 per cent in the quarter for an annual rate of 2.1 per cent.
“We expect underlying inflation to remain in the bottom half of the RBA’s 2 to 3 per cent target band through to year end, although early signs of a pass-through of the weaker currency into imported prices are apparent and bear close watching.”
So do I, so long the labour market is weak.
