Monthly inflation plunges again

David Llewellyn-Smith

Wednesday, 10 January 2024

At first blush, the RBA will be pleased as headline and core inflation subside:

Core inflation especially fell:

However, services are still sticky and Alboflation rampant in houses and utility bills:

It is remarkable how much worse Alboflation has made it. We’d be below 3% if we had a government with a clue.

There’s no immediate trigger for easing here, but with more goods, transport and energy prices falling ahead, I still see multiple rate cuts this year.

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.