Interest rates a race between Alboflation and global shock

Wednesday 27 September 2023

Alboflation is running riot. Westpac with the note.

The Monthly CPI lifted 0.6% in August as expected. Inflation was restrained by various government energy rebates but there is still an upside risk to both our CPI and Trimmed Mean forecasts.

As reported by the ABS, the Monthly CPI Indicator rose 5.2% in the year to August, up from 4.9%yr in July but still a moderation from the peak of 8.4%yr in December 2022. This was in line with Westpac’s, and the market median forecast, of 5.2%yr.

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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.