Australia’s CPI consumer price index was stable in the first quarter after the slowdown in the previous quarter.
A positive surprise was expected to fuel the debate on a change in monetary policy by the central bank, but the data has not met expectations and the Australian dollar is under pressure. The result has been the following:
CPI data
- IPC de Australia intertrimestral in the first quarter: 0.6% (expected 0.9%; previous 0.9%).
- Australia CPI year-on-year in the first quarter: 1.1% (expected 1.4%; previous 0.9%).
- Australia’s adjusted average CPI quarter-on-quarter in the first quarter: 0.3% (expected 0.5%; previous 0.4%).
- Australia’s adjusted average CPI quarter-on-quarter in the first quarter: 1.1% (expected 1.2%; previous 1.2%).
“Government aid has had a great impact on the CPI and for the next few quarters the decrease in these packages is destined to boost inflation,” said Westpac analysts.
Description of the consumer price index
The CPI, published by the RBA and distributed by the Australian Bureau of Statistics, captures changes in the price of goods and services. The CPI is the most meaningful way to measure changes in purchasing power. Australia publishes the CPI quarterly, rather than monthly, which increases the impact of the report on the market. A higher than expected data would anticipate a firm stance which would be bullish for the Australian dollar.
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