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.
Business Insider Emails & Alerts
Site highlights each day to your inbox.