Australia: Q3 CPI likely to print 0.7% - Westpac

Analysts at Westpac are forecasting a 0.74% Q3 rise in the Australian headline CPI of which, 0.47ppts are likely to come from energy while he ex-energy (household electricity and gas) inflation rises 0.27%.

Key Quotes

 “The Q2 CPI printed 0.2% compared to the market median of 0.5%. The annual rate moderated to 1.9%yr from 2.1%yr in Q1. The core measures rose as expected at 0.5%qtr highlighting just how modest the broader inflation picture is outside of housing or health. The annual pace of the average of the core measures was flat at 1.8%yr.”

“Core inflation is forecast to print 0.3%qtr (0.29%) holding the annual rate flat at 1.8%yr. The trimmed mean forecast is 0.27% while the weighted median forecast is 0.32%. The two quarter annualised pace of core inflation decelerates to 1.7%yr from 2.1%yr, below the RBA’s target band.”