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Easing In MI Inflation Gauge But Inflation Still “Too High”

AUSTRALIA DATA

The Melbourne Institute inflation gauge in May eased to 5.9% from 6.1%. The peak appears to have been in January at 6.4%. It remains elevated and is moderating at a gentle pace. The MI trimmed mean was lower at 5.2% from 5.5% in April but in line with March. After rising in April due to base effects, monthly CPI inflation may ease again in May. But both series are indicating that inflation remains “too high”.

Australia CPI y/y% vs MI inflation gauge y/y%

Source: MNI - Market News/ABS/Refinitiv

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