CPI in detail: No smoking gun to lift rates
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As noted earlier, Australia’s Consumer Price Index (CPI) came in at 0.8% in the June quarter – slightly above market expectations of a 0.7% rise:
Rebounding after last June’s heavy fall.
Annual CPI surged 3.8% in Q2. However, this rise was driven by the ‘base effect’, since CPI fell by 3.7% in the corresponding Q2 quarter of 2020 (as shown above).
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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.