CPI meets expectations but core slightly higher. A$ weakness keeps core above 2%

The headline inflation measure (Consumer Price Index, CPI) for the second quarter has come in bang-on market expectations at +0.2% q/q for a 1.3% increase over the year. The increase comes courtesy of a 2.6% yr/yr increase in non-tradables being offset by a 0.9% yr/yr fall in tradables. The more …read more

RBA Statement on Monetary Policy revises down growth and inflation forecasts (as expected)

Given the fact that the RBA cut the Cash Rate by 25bps earlier this week it will have come as no surprise to anyone that today’s release of the February Statement on Monetary Policy (SOMP) sees a revision down of growth and inflation forecasts. The table below details these revised …read more

Cost of Living Indexes highlight lack of inflation worries

The fall in inflationary pressures evidenced by the official CPI data last week (see here for commentary) is further emphasised by today’s release of the Cost of Living (COL) Indexes. The COL Indexes are designed to answer the question “By how much would after tax money incomes need to change to …read more

Will rates be cut on Tuesday?

Tuesday sees the first of the RBA Board meetings for the year and therefore the first opportunity for the Bank to move on interest rates…if it wants to. There has been much speculation in recent days suggesting that the Bank might be looking to cut the Cash Rate by 25bps …read more

Headline CPI weak but the “core” is stronger

Today saw the release of the Q4 inflation date.  Headline CPI was up just 0.2% q/q for an annual increase of +1.7% (down from +2.3% in Q3), this was a little weaker than the market had been expecting and falls outside the RBA’s 2-3% target range. However, the measures more …read more

SOMP shifts inflation expectations slightly up

The Statement on Monetary Policy from the RBA today has changed very little from the previous release in August. A somewhat lower A$ has led to some minor upward revisions to inflation expectations (previously mid-2015 core inflation was forecast at 1.75 – 2.75%, now that’s 2-3%. All forecasts from then …read more

Cost of Living pressures falling fast

Despite the political rhetoric about how all us Aussies are doing it tough with cost of living pressures, the reality is rather different. The Cost of Living Indexes released this morning by the ABS are designed to answer the question “By how much would after tax money incomes need to …read more

Inflation falls

Third quarter inflation has fallen, broadly in line with market expectations. The headline CPI rose 0.5% q/q for an annual increase of 2.3% (down from 3.0% in the June quarter). The RBA will be paying particular attention to the two “core” inflation measures. Trimmed mean rose 0.4% q/q and +2.5% …read more

Import price falls keep a lid on PPI

The release of the Producer Price Indexes (PPI) for the June quarter show a fall in import prices for the quarter keeping a tight lid on any inflationary pressures building. Total Final stage PPI fell by 0.1% over the quarter for a 2.3% rise on the year (down from +2.5% …read more

Cost of Living follows CPI higher

The Cost of Living Indexes released this morning by the ABS are designed to answer the question “By how much would after tax money incomes need to change to allow households to purchase the same quantity of consumer goods and services that they purchased in the base period?” They consider …read more

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