FXstreet.com (Barcelona) - Australi's CPI came up to 1.4% in Sept quarter vs 1.1% expected, including carbon tax for annual rate of 2%. YoY basis, the inflation stood at 2.0% vs 1.6% expected. Numbers are much stronger than expected, and should hold the RBA from taking any hasty decision on rate cuts on its next Nov meeting.
Both headline and core inflation in Australia show inflationary pressures picking up again, with the introduction of the carbon tax on Jul. 1 affecting consumer prices last quarter. While the RBA has been suggesting more room for further cuts is possible, with main worries on China and a global slowdown, the data is expected to ease dovish tone for now.
As Adam Button, Analyst at Forexlive, notes: "There was talk that economists may have had a hard time with effects from the carbon tax but the internal numbers look genuinely high including a 1.4% rise in clothing, 1.3% in health and 1.4% in financial services." Pricing of an RBA rate cut has moved sharply lower following stronger-than-expected CPI numbers, now around 60%.
Both headline and core inflation in Australia show inflationary pressures picking up again, with the introduction of the carbon tax on Jul. 1 affecting consumer prices last quarter. While the RBA has been suggesting more room for further cuts is possible, with main worries on China and a global slowdown, the data is expected to ease dovish tone for now.
As Adam Button, Analyst at Forexlive, notes: "There was talk that economists may have had a hard time with effects from the carbon tax but the internal numbers look genuinely high including a 1.4% rise in clothing, 1.3% in health and 1.4% in financial services." Pricing of an RBA rate cut has moved sharply lower following stronger-than-expected CPI numbers, now around 60%.
