AUD: CPI expected to have stabilized at 1.1% in Q3 - BBH

Research Team at BBH, suggests that Australia is continuing to wrestle with low inflation as the headline CPI has been trending lower and at 1.0% in Q2 was the lowest level since the late-1990s.

Key Quotes

“It is expected to have stabilized at 1.1% in Q3.  The central bank puts more emphasis on the trimmed mean and weighted median measures.  The trimmed mean is expected to remain at the record low matched in H1 of 1.7%.  The weighted median may tick up to 1.4% from 1.3% in H1, which is also a record low. 

The subdued price pressures keep many expecting another rate cut next year.  For the fourth month, the Australian dollar has been largely confined to a $0.7450-$0.7750 trading range.  The poor employment report reinforced the upper end, while a subdued inflation report could see it head toward the lower end of the range.”