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The Australian Consumer Price Index (CPI) for the September quarter is out and came in at 0.5% for the quarter, below market expectations of 0.7%:
In the year to September, CPI was just 1.5%, the same as last quarter’s reading but below the 1.7% expected.
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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 0.3% (trimmed mean) and 0.3% (weighted median) for the quarter and by 2.1% (trimmed mean) and 2.2% (weighted mean) over the year.
Hence, there are no inflationary pressures 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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