Australia’s inflation nightmare – Australia’s inflation rate is the highest globally

Analysts at a top Australian investment banking firm, Barrenjoey Capital Partners, point out that Australia’s recent inflation performance is just about the worst on the planet:

  • “Using the trimmed mean is preferable – Australia’s six month annualised rate of trimmed mean inflation of 3.6% is the highest inflation globally (higher even than the US at 3.2% 6mAR trimmed).”

Data info is here from Wednesday’s release:

Westpac’s take:

This take is spot on:

he stunning higher than expected across-the-board inflation readings are reverberating through markets.

Via Commonwealth Bank of Australia:

  • yield on the three‑year Australian government bond jumped by 13bp to 4.03%
  • Interest rate markets are now pricing only a small chance of a sole 25bp rate cut by the end of the year

TD say to forget about a Reserve Bank of Australia rate cut in 2024 due to:

strong employment market

ongoing high migration into Australia

rising energy prices

And conclude:

  • “The RBA is likely to adopt a more hawkish stance, but one that it’s loath to act upon,”
  • expect the first cut now in February 2025


From the front page of the RBA website. The RBA target band for inflation is 23 to 3%. Not rhere yet.

This article was written by Eamonn Sheridan at Source