MNI BRIEF: Aussie Q3 Trimmed CPI Meets Expectations At 3.5%
MNI (SYDNEY) - Trimmed mean annual inflation rose 3.5% over the September quarter as expected, while headline inflation printed at 2.8% y/y, 10 basis points lower than anticipated, data from the Australian Bureau of Statistics showed Wednesday.
The trimmed mean measure fell 40bp from Q2, while the headline result was down 100bp due in large part to government electricity subsidies and lower energy prices.
The Reserve Bank of Australia is focused more on the underlying measure due to the distorting effect of government rebates. The RBA had expected trimmed mean at 3.5% by December within its most recent August forecasts. (See MNI POLICY: Strong Jobs Growth Still Compatible With RBA Cuts)
The bank will update its predictions following its policy meeting next Tuesday.
The monthly CPI indicator for September, also released today, showed headline inflation at 2.1% and trimmed mean at 3.2% y/y.