Monthly inflation soft, TD warns anyway

Monday, 31 March 2014

TD Securities monthly inflation is out and a moderate monthly reading of 0.2% for an annual rate of 2.7 per cent. The trimmed mean lifted by 0.1 per cent and an annual rate of 2.7 per cent.

However, Annette Beacher is not happy:

“Inflation pressures are clearly building up, neither due to ‘noise’ nor proof that Australia’s speed limit on growth is below 3 per cent…While the RBA board has a few months to voice the ‘period of stability in the cash rate’ theme, the use-by date for the emergency cash rate is approaching fast.”

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.