22 Jul 2015
Australia's Q2 CPI preview - ANZ
FXStreet (Bali) - According to the ANZ Research Team, at this stage, inflation in Australia is neither a constraint nor a threat on further monetary easing.
Key Quotes
Australian Q2 CPI data is released at 1.30 pm today and is expected to show relatively modest inflation in underlying/core terms. Our Australian team expect headline inflation to have been a high 0.9% q/q, but this is significantly boosted by sharp increases in fuel prices in the quarter.
Underlying inflation is expected to have been modest at 0.5% q/q and 2.2% y/y, which is below consensus. With the economy running at a below-trend pace and wages growth subdued, inflation is likely to remain comfortably within the RBA’s 2-3% target band. Inflation is therefore neither a constraint on further monetary easing, nor a threat to the current easy monetary policy stance.
Key Quotes
Australian Q2 CPI data is released at 1.30 pm today and is expected to show relatively modest inflation in underlying/core terms. Our Australian team expect headline inflation to have been a high 0.9% q/q, but this is significantly boosted by sharp increases in fuel prices in the quarter.
Underlying inflation is expected to have been modest at 0.5% q/q and 2.2% y/y, which is below consensus. With the economy running at a below-trend pace and wages growth subdued, inflation is likely to remain comfortably within the RBA’s 2-3% target band. Inflation is therefore neither a constraint on further monetary easing, nor a threat to the current easy monetary policy stance.