Australia: Q3 CPI data expected to show a pickup in inflation – Lloyds Bank

Australian Q3 CPI data, to be released early Wednesday morning, are expected to show a pickup in inflation as the consensus expectation is that the annual ‘headline’ rate will rise to 2%, the Australian central bank’s target for inflation, explains he research team at Lloyds Bank.

Key Quotes

“The central bank usually pays more attention to underlying measures such as the ‘trimmed mean’ and ‘weighted median’ but these also seem likely to have picked up to about 2%. Despite this rebound, the Reserve Bank seems in no hurry to raise interest rates. Nevertheless, such an outturn will likely reinforce expectations that the next move in rates will be upward.”