MNI BRIEF: Aussie Trimmed Mean Rises In Oct
MNI (SYDNEY) - Australian monthly trimmed mean inflation rose 30 basis points over October to 3.5% y/y, while headline CPI grew 2.1% y/y, 20bp better than expected, data from the Australian Bureau of Statistics showed Wednesday.
Trimmed mean is the Reserve Bank of Australia’s preferred measure of inflation. (See MNI: RBA Rate On Track For Cuts, Trump Adds To Risk-Ex Staff) The RBA expects the metric to print at 3.4% y/y by Q4 and be back within the top of its 2-3% target band by June 2025.
“The falls in electricity and fuel had a significant impact on the annual CPI measure this month. When prices for some items move by large amounts, measures of underlying inflation like the CPI excluding volatile items and holiday travel, and the Trimmed mean can provide additional insights into how inflation is trending,” said Michelle Marquardt, head of prices statistics at the ABS.