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MI Inflation Gauge Holds Above 4%

AUSTRALIA DATA

The Melbourne Institute’s inflation gauge has been stickier in coming down than headline inflation for the last year. The January reading moderated to 4.6% from 5.2%, helped by lower petrol prices, but remains above November’s 4.2%. MI’s trimmed mean measure eased to 4.4% from 5.2% but higher than November’s 3.8%. The December and Q4 CPIs surprised to the downside and the RBA is unanimously expected to keep rates at 4.35% on Tuesday.

Australia CPI vs MI inflation gauge y/y%

Source: MNI - Market News/Refinitiv/ABS

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