Wednesday’s monthly CPI indicator report added little to the market’s available information set in terms of their expectation regarding the next (almost certainly downward) adjustment in the RBA policy rate.
Favourable base effects relating to electricity prices, including subsidies that took effect from July, saw the headline inflation rate decline to an annual 3.5 per cent. That decline, however, was less than expected. Moreover, domestic (non-tradable) inflation and services inflation remain uncomfortably “sticky” at 4.5 per cent and 4.4 per cent respectively (the former despite those aforementioned favourable subsidy effects).
Read Stephen’s ‘On the other hand’ here
The views expressed are her own and do not consider the circumstances of any investor.
