Australia Q3 inflation below RBA’s comfort zone

FXStreet (Bali) – Australia’s CPI (QoQ) for Q3 came in at 0.5%, below forecasts of 0.6%, while the yearly reading came also below expectations at 1.5% vs 1.7% exp. As per Australia’s RBA trimmed mean, CPI (QoQ) came in at 0.3%, below forecasts (0.5%), while RBA trimmed mean CPI (YoY) came at 2.1%, well below forecasts of 2.4%.

Q3 Key Points – ABS

THE ALL GROUPS CPI: rose 0.5% this quarter, compared with a rise of 0.7% last quarter. rose 1.5% over the twelve months to September quarter 2015, compared with a rise of 1.5% over the twelve months to the June quarter 2015.

OVERVIEW OF CPI MOVEMENTS: The most significant price rises this quarter are international holiday travel and accommodation (+4.6%), fruit (+8.2%) and property rates and charges (+4.6%). The most significant offsetting price falls this quarter are vegetables (-5.9%), telecommunication equipment and services (-2.0%) and automotive fuel (-1.7%).

Australia’s CPI (QoQ) for Q3 came in at 0.5%, below forecasts of 0.6%, while the yearly reading came also below expectations at 1.5% vs 1.7% exp. As per Australia’s RBA trimmed mean, CPI (QoQ) came in at 0.3%, below forecasts (0.5%), while RBA trimmed mean CPI (YoY) came at 2.1%, well below forecasts of 2.4%.

(Market News Provided by FXstreet)