Australian inflation Q2: Better RBA 'trimmed mean' hints Aug rates on hold
|Following Australia's shockingly low Q1 2016 CPI reading, today's inflation figures for Q2 show a brighter picture, which strengthens the case for the RBA to leave rates unchanged in August.
Main headlines
CPI headline q/q 0.4% vs 0.4% exp and -0.2% prior
CPI headline y/y 1% vs 1.1% exp and 1.3% prior
RBA trimmed mean q/q 0.5 vs 0.4% exp and 0.2% last
RBA trimmed mean y/y 1.7% vs 1.5% exp and 1.7% last
Key points Q2 2016
THE ALL GROUPS CPI
- rose 0.4% this quarter, compared with a fall of 0.2% in the March quarter 2016.
- rose 1.0% over the twelve months to the June quarter 2016, compared with a rise of 1.3% over the twelve months to the March quarter 2016.
OVERVIEW OF CPI MOVEMENTS
- The most significant price rises this quarter are medical and hospital services (+4.2%), automotive fuel (+5.9%), tobacco (+2.1%) and new dwelling purchase by owner-occupiers (+0.9%).
- The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-3.7%), motor vehicles (-1.3%) and telecommunication equipment and services (-1.5%).
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