Aussie CPI Q2: Ttrimmed mean CPI -0.1 vs Reuters poll +0.1 pct
|Australia’s Q2 Consumer Price Index data has just been released, including two of the several underlying measures that the central bank looks at.
- Australia Q2 RBA trimmed-mean CPI -0.1 pct q/q (Reuters poll +0.1 pct).
- Australia Q2 CPI (all groups) -1.9 pct QoQ (Reuters poll -2.0 pct).
- Australia Q2 RBA weighted median CPI +0.1 pct QoQ (Reuters poll +0.1 pct).
- Australia Q2 RBA trimmed mean CPI +1.2 pct YoY (Reuters poll +1.4 pct).
- Australia Q2 CPI (all groups) -0.3 pct YoY(Reuters poll -0.4 pct).
- Australia Q2 RBA weighted median CPI+1.3 pct YoY (Reuters poll +1.2 pct).
- Australia Q2 RBA weighted median CPI+1.3 pct YoY(Reuters poll +1.2 pct).
AUD/USD implications
Given the extreme condition of the economy in Q2, the RBA is unlikely to place much weight on this data, analysts at Westpac argued. However, the price has printed a fresh low to 0.7149 in a move of just 14 pips.
Australian June 20 Consumer Price Index -
The Consumer Price Index (CPI) fell 1.9 per cent in the June 2020 quarter according to the Australian Bureau of Statistics (ABS). Chief Economist for the ABS, Bruce Hockman said: "This was the largest quarterly fall in the 72 year history of the CPI."
The June quarter fall was mainly the result of free child care (-95.0 per cent), a significant fall in the price of automotive fuel (-19.3 per cent) and a fall in pre-school and primary education (-16.2 per cent), with free pre-school being provided in NSW, Victoria and Queensland. Mr Hockman said: "Excluding these three components, the CPI would have risen 0.1 per cent in the June quarter."
Description of the Consumer Price Index
The Consumer Price Index released by the RBA and republished by the Australian Bureau of Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The trimmed mean is calculated as the weighted mean of the central 70% of the quarterly price change distribution of all CPI components, with the annual rates based on compounded quarterly calculations.
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