22 Oct 2014
Inflationary pressures in Australia soften - BTMU
FXStreet (Łódź) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ comments on Australia's weak Q3 CPI numbers released today.
Key Quotes
"We had inflation data today from Australia which indicated some softening in inflationary pressures that was in line with market expectations. A favourable base effect and the scrapping of a carbon tax that lowered electricity prices both played a role in lowering the annual rate, which fell from 3.0% in Q2 to 2.3% in Q3."
"Given the global disinflationary force it was no surprise to see the tradable inflation rate falling from 2.9% in Q2 to 2.0% in Q3. Still though, the weighted median CPI rate on a Q/Q basis increased 0.6%, slightly above the Bloomberg consensus with the annual rate remaining at 2.6%."
"So the data will no doubt be reassuring for the RBA in remaining on hold, but it certainly doesn’t indicate to us any increase in scope for additional monetary easing. Clearly a neutral inflation report for the Australian dollar."
Key Quotes
"We had inflation data today from Australia which indicated some softening in inflationary pressures that was in line with market expectations. A favourable base effect and the scrapping of a carbon tax that lowered electricity prices both played a role in lowering the annual rate, which fell from 3.0% in Q2 to 2.3% in Q3."
"Given the global disinflationary force it was no surprise to see the tradable inflation rate falling from 2.9% in Q2 to 2.0% in Q3. Still though, the weighted median CPI rate on a Q/Q basis increased 0.6%, slightly above the Bloomberg consensus with the annual rate remaining at 2.6%."
"So the data will no doubt be reassuring for the RBA in remaining on hold, but it certainly doesn’t indicate to us any increase in scope for additional monetary easing. Clearly a neutral inflation report for the Australian dollar."