Australia: Q4 CPI likely to print 0.3%qtr – Westpac
|Justin Smirk, analyst at Westpac, suggests that the Westpac’s forecast for the Australia’s December quarter headline CPI is 0.3%qtr, which will see the annual pace ease to 1.5%yr from 1.9%yr.
Key Quotes
“Westpac’s forecast also takes the two quarter annualised pace down to 1.4%yr from 1.6%yr.”
“The December quarter is a seasonally soft quarter with the ABS projecting a seasonal factor of +0.2ppt. However, it was only just back in December 2016 that that quarter’s seasonal factor was actually a positive. As such we caution there may be significant revisions to the December quarter seasonal factors.”
“Core inflation is forecast to print 0.3%qtr (0.32% at two decimal places) moderating the annual pace to 1.6%yr from 1.7%yr. The trimmed mean is forecast to rise 0.30% and the weighted median is forecast to rise 0.34%. The two quarter annualised pace of core inflation eases back to a very modest 1.3%yr from 1.5%yr putting the momentum in inflation well below the RBA’s target band.”
“Core inflation is forecast to be below the bottom of the RBA target band as moderating housing costs hold back overall inflationary pressures. Overlay a competitive deflationary pressure in consumer goods so it is hard to see core inflation breaking much higher any time soon.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.