Australian monthly CPI due today, expected to be lower. Does it even matter to the RBA?

The monthly CPI data from Australia does not show all components of the CPI, that’ll have to wait for the quarterly data release.

  • The monthly CPI indicator does, however, provide a timelier indication of inflation using the same data collected for use in the quarterly CPI. The monthly reading includes updated prices for between 62 and 73 per cent of the weight of the quarterly CPI basket, its not the full picture.

The quarterly CPI reading for the July – September quarter is not due until Wednesday 30 October

However! We work with what we’ve got, which is the monthly. Due at 11.30 am Sydney time

  • 0130 GMT
  • 2130 US Eastern time

Earlier previews:

Adding in this snippet from BNZ:

  • Australian monthly CPI data are expected
    to show lower headline inflation, from 3.5% to 2.7% y/y in
    August, driven by electricity subsidies and fuel base
    effects.
  • Yesterday, the RBA noted that headline inflation
    will decline for a time, but underlying inflation is more
    indicative of inflation momentum, and it remains too high.

More on the Reserve Bank of Australia here from yesterday’s statement and Governor Bullock’s press conference.

From the Reserve Bank of Australia website, the cash and current inflation rates.

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