AUD: Q4 CPI to cement core inflation toward the bottom – RBC CM

FXStreet (Delhi) – Research Team at RBC Capital Markets, expects the Australian Q4 CPI to cement core inflation toward the bottom of the RBA’s 2–3% target range, giving it scope to ease further if activity disappoints.

Key Quotes

“Headline CPI is likely to have posted a very small rise in the quarter, underpinned by lower fuel and transport costs, lower food prices, and some further softness in the rental component of housing.

We expect a 0.2% increase, with y/y holding steady at 1.5%. The average of the key core measures—trimmed mean and weighted median—should post a firmer but still modest increase of 0.5%, with the y/y rate edging down to 2.1%.”

Research Team at RBC Capital Markets, expects the Australian Q4 CPI to cement core inflation toward the bottom of the RBA’s 2–3% target range, giving it scope to ease further if activity disappoints.

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