Australia also reported her monthly inflation figures this morning, says FX analyst from Commerzbank, Volkmar Baur.
The trend of inflation moves in the right direction
“Although only part of the price index is examined and updated monthly, this still provides an excellent early indication of the quarterly ‘complete’ inflation report. With an interannual increase of 2.1%, inflation has now reached the lower end of the target range of the Bank of the Australian Reserve, retrospectively validating the decision of the Central Bank of May 20 to cut the interest rates. The next meeting is scheduled for two weeks, and I would also expect another cut in the cash rate then. “
“Two figures in the inflation report are particularly encouraging. In the first place, inflation in service prices fell to 3.29% year -on -year, which is the lowest level in three years. Give highly susceptible to fluctuations. “
“However, the so -called inflation of ‘half trimmed’ also fell to only 2.4% year -on -year in May, its lowest level since the late 2021. By definition, this calculation method excludes components susceptible to volatility. Therefore, the trend of inflation moves in the right direction, racing the path for the next key cut of interest rates on July 8. However, the market has valued the market step, so I should not affect the Aud. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
