Australia: Melbourne Institute January headline inflation gauge +0.3% m/m (prior +1.0%)

Last month this data sent a shiver through Australian financial markets, with a huge jump:

• Australian private survey of inflation soared by 1% m/m in December, the most in 17 months

Since then we had more subdued official data:

• Australian Q4 headline CPI 4.1% y/y vs 4.3% expected

For January, headline rates:

+0.3% m/m

• prior +1.0%

4.6% y/y

• prior 5.2%

Trimmed mean (a measure of core inflation)

+0.2% m/m

• prior +0.9%

4.4% y/y

• prior 5.2%

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The RBA statement for February is due tomorrow:

• is expected to keep the cash rate on hold at its current 12 year high

This article was written by Eamonn Sheridan at www.forexlive.com. Source