Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Brent crude rose to $80.11/bbl on average in July and in August so far is $85.29. While this is still down 12.6% y/y, it is up from -23.9% in July and has risen 13.8% since June. Global oil markets are tightening after OPEC+ cut supply and growth has been stronger than expected. Oil prices move closely with Australia’s headline CPI with lags of up to 6 months. This may cause the moderation in headline inflation to pause before the end of the year even if oil prices stay at their current level (see chart). It will be a bigger problem if demand is strong enough for increased transport costs to be passed onto consumers.
Australia CPI y/y% vs Brent crude $
Source: MNI - Market News/Refinitiv/ABS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.