Australia's Q3 CPI beats expectations, RBA trimmed mean CPI unchanged

Following Australia's brighter Q2 2016 CPI readings, today's inflation figures for the Q3 show another marked improvement, which should reinforce the notion of a neutral RBA going foward.

Main headlines

CPI headline q/q 0.7% vs  0.4% exp and 0.4% prior

CPI headline y/y 1.3% vs 1.1% exp and 1.0% prior

RBA trimmed mean 0.4% vs 0.4% exp and 0.5% last

RBA trimmed mean y/y 1.7% vs 1.7% exp and 1.7% last

Q3 key figures

THE ALL GROUPS CPI

• rose 0.7% this quarter, compared with a rise of 0.4% in the June quarter 2016.
• rose 1.3% over the twelve months to the September quarter 2016, compared with a rise of 1.0% over the twelve months to the June quarter 2016.

OVERVIEW OF CPI MOVEMENTS

• The most significant price rises this quarter are fruit (+19.5%), electricity (+5.4%), vegetables (+5.9%), tobacco (+2.3%) and property rates and charges (+4.0%).
• The most significant offsetting price falls this quarter are automotive fuel (-2.9%) and telecommunication equipment and services (-2.5%).