TD INFLATION GAUGE: Australian Prices Eased In January

Getty/ Ashley Pon

As seems often the case after a spike in the TD-MI Monthly inflation index, a big jump is followed by a small or flat number.

Such was the case in January with TD Securities this morning reporting prices rose by only 0.1% in January after December’s big 0.7% jump.

The 12-month rate of inflation moderated from 2.7% in December back to the middle of the RBA’s band in January.

Annette Beacher, Head of TD Securities Asia Pacific Research, said that January’s print was very low in comparison to the normal number around this time, as “usually January is a seasonally strong one for our Inflation Gauge, rising on average by 0.4 per cent over the last seven years.”

So maybe the RBA doesn’t have to worry too much about inflation when it meets tomorrow after all.

Inflation Slows – TD Securities

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.