October 30, 2024 01:36 GMT
AUSTRALIA DATA: Higher September Services Inflation Dampens Good Core Outcome
AUSTRALIA DATA
September monthly CPI data were also released today and showed further moderation from August but there was an increase in services inflation bringing the annual rate to its highest since May. The pickup at the end of the quarter may worry the RBA that sticky services inflation could have continued into Q4, although 3-month momentum eased it remains high.
Australia services vs trimmed mean CPI y/y% monthly
Source: MNI - Market News/ABS
- The September trimmed mean moderated 0.2pp to 3.2% y/y. With disinflation stalling in H1 2024, this is the lowest since January 2022. CPI ex volatile items and holidays was flat in September and eased 0.3pp to 2.7% y/y, approaching the mid-point of the RBA’s 2-3% band.
- Services inflation picked up to 4.4% y/y from 4.2%, while non-tradeables moderated to 3.5% from 3.8%, the lowest since January 2022.
- September headline CPI moderated to 2.1% y/y from 2.7% with government energy rebates and lower petrol prices bringing it to its lowest since the pandemic-impacted March 2021.
- Like with the quarterly data, the moderation in September inflation was due to goods and tradeables which printed at 0.3% y/y and -0.4% y/y respectively, after 1.4% and 0.5% in August.
- Food & non-alcoholic beverages (+3.3% y/y), alcohol & tobacco (+6.3%) and housing (+1.6%) were the main contributors to annual inflation, according to the ABS.
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