Westpac write "Consumer inflation.........>

AUSTRALIA: Westpac write "Consumer inflation undershot the RBA's 2-3% target

band in 2018. Headline inflation was 1.8%, including a 0.6% rise in Q4. Core

inflation for Q4 printed at 0.4%qtr, 1.8%yr. Key to this lack of price pressure

are: weak wages growth; a housing downturn; sluggish consumer spending; and

intense retail competition. While the AUD has weakened the pass through of

higher import prices to consumers is limited. For the March quarter, we expect

headline inflation of only 0.1%qtr 1.4%yr. Additional forces at work in the

period are: retreating fuel prices, subtracting 0.2ppts (after adding 0.1ppt in

Q4); and a seasonally soft quarter (-0.2ppts). Core inflation is expected to be

soft, at 0.3%qtr, moderating to 1.6%yr. This follows a couple of quarters at

0.4%."