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.