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The Australian Consumer Price Index (CPI) for the June quarter is out and came in at 0.7% for the quarter, below market expectations of 0.8%:
In the year to June, CPI was just 1.5%, below the 1.7% expected but also slightly above last quarter’s 1.3% reading.
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Most importantly for interest rates, underlying inflation is running at the lower end of the RBA’s inflation target, coming it at 0.6% (trimmed mean) and 0.5% (weighted median) for the quarter and by 2.2% (trimmed mean) and 2.4% (weighted mean) over the year.
Hence, no inflationary pressure here.
I will be back shortly with a detailed report.
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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