Australian inflation comes in cold

Wednesday 31 October 2018

The ABS is out with September QTR CPI and the news is cold:

Analytical series even weaker than headline. Strip out tobacco taxes and it’s a shocker. The Aussie dollar is down but not as much as it should be. Inflation just peaked and it will be downhill from here to the next RBA rate cut. It literally has no idea what it is doing as inflation is forecast to boom as housing goes bust:

More to come.

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.