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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.
AUSTRALIA DATA
The October RBA meeting minutes cited core services as an upside inflation risk as they have “remained persistent internationally”. This is an area that they have been monitoring for some time as they are impacted by wages and domestic demand. While they eased in Q3 and appear to have peaked in Q2, the move was helped by very favourable base effects.
- In Q3 market services inflation eased to 6.2% y/y from 6.8%, but was helped by favourable base effects. It still rose 1.3% q/q. Total services increased 1% q/q and 5.8% y/y after 6.3% y/y in Q2. Goods rose +1.2% q/q and 4.9% y/y after 5.8% in Q2.
- Services inflation remains elevated and likely to remain a concern for the RBA. The ABS noted that for a number of services annual inflation remains high and rents, dental and insurance all rose in Q3. Rents increased 7.6% y/y up from 6.7%, the highest since 2009.
Australia services CPI y/y%
Source: MNI - Market News/Refinitiv
- Monthly headline services prices moderated to 5.3% y/y in September from 5.6% but remain in the range seen since February. Good news is that the 6-month annualised rate fell to 6.8% from 9.4%, the lowest since February 2022. Goods inflation rose to 5.7% y/y in September from 5.1%.
- Domestically-driven non-tradeables rose 1.3% q/q and 6.2% y/y in Q3 down from 6.9% also due to base effects but September was sticky at 6.2%. Q3 tradeables rose 0.7% and 3.7%, the lowest in two years, but September rose to 4.2% y/y from 3.4%, boosted by fuel.
Australia domestically-driven inflation y/y%
Source: MNI - Market News/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.
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