Australia reported a quarterly inflation level of 0.5%, below +0.7% expected. Year over year, the headline number stands at 1.5%, also below 1.7% predicted. Core inflation, known in Australia as Trimmed Mean CPI, is only 0.3% q/q instead of 0.5% expected and 2.1% y/y against 2.4% expected.
The shortcoming on all numbers hit the Australian dollar hard. Odds for a rate cut on November 3rd have significantly risen.
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