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Inflation Gauge Signalling CPI Moderation

AUSTRALIA DATA

The Melbourne Institute’s inflation gauge for July eased to 5.4% from 5.7%, the lowest since October 2022. The data is not seasonally adjusted and July usually sees a robust monthly rise due to the start of the new financial year but 2023’s 0.8% m/m was lower than 2022’s 1.2%, possibly signalling some easing in pricing power. Headline CPI is now running below the gauge, but the latter is signalling some further moderation in CPI inflation in July.

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

Source: MNI - Market News/Refinitiv/ABS

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