CPI Is Out, And It's A Miss On The Low Side

Australian CPI is out today. The results:

  • CPI for the March quarter was 0.4%, below the expected 0.7%
  • Annual inflation comes in at 2.5%
  • The inflation rate’s square in the middle of the Reserve Bank’s target band of 2-3%. Shares are rallying at the news, the $A is off slightly.

    Clothing and footwear (-3.9%), furnishings (-1.3%) and recreation and food (-0.8%) were the main brakes on the overall number for the quarter.

    While it’s not a dramatic miss this is builds on the case for a cut to interest rates over the coming months.

    Details at the ABS.

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