Australia: Headline inflation below RBA’s 2-3% target band - Rabobank

Sandeep Kanihama FXStreet Contributor

Australian CPI came in at 0.4% q-o-q headline vs. an expected 0.5%, and in y-o-y terms it was down from 2.1% to 1.9% and once again the ever-optimistic RBA finds itself with headline inflation below its 2-3% target band despite everything looking sunny, as far as it is concerned, explains the research team at Rabobank.

Key Quotes

“Moreover, the trimmed mean measure was 0.4% q-o-q and 1.8% y-o-y, down from 1.9%, and the weighted median was 0.3% and 1.7%, down from 1.9%. That’s three different servings of the same humble pie. Don’t expect any changes from the RBA, however. Their economic projections are all written by the kind of teenagers that wander off alone into haunted houses.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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