CPI eases

The Australian Bureau of Statistics has just released the June quarter CPI and it’s about expected at 0.5 headline with slightly higher analytical measures. The dollar jumped on the latter. At first blush it looks like tradable inflation is still firmish but the dollar has overreacted because it’s priced for cuts.

JUNE KEY FIGURES

		Mar Qtr 2014 to Jun Qtr 2014	Jun Qtr 2013 to Jun Qtr 2014
Weighted average of eight capital cities		% change	% change

All groups CPI		0.5	3.0
Food and non-alcoholic beverages		0.4	2.5
Alcohol and tobacco		1.6	7.1
Clothing and footwear		1.5	-0.6
Housing		0.8	3.9
Furnishings, household equipment and services		1.1	1.0
Health		2.9	4.9
Transport		-0.7	2.7
Communication		-1.7	-0.3
Recreation and culture		-0.3	3.3
Education		0.0	5.1
Insurance and financial services		0.0	1.0
CPI analytical series
	All groups CPI, seasonally adjusted	0.6	3.0
	Trimmed mean	0.8	2.9
	Weighted median	0.6	2.7

All Groups CPI, Quarterly change
Graph: All Groups CPI, Quarterly change

Contribution to quarterly change
Graph: Contribution to quarterly change

More to come…

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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.