More on Australian inflation: "data overstate the true rate of inflation"

Greg posted on the Australian inflation data yesterday:

• The weaker CPI slowed the AUDNZD a bit. AUDJPY cracking lower.
• Lower CPI send the AUDUSD lower. Tests key swing area.
• Australian CPI for 3Q 0.6% vs. 0.8% estimate. Trimmed mean 0.4% vs 0.5% est.i

And, from earlier today I had this:

• AUD - HSBC on the inflation data, roll back their rate hike call

Via Capital economics, another response to the data (in brief) and what they see as implications for the Reserve Bank of Australia:

• The drop back in the headline inflation rate ... is quite remarkable given the surge in utility prices
• It just underlines the weakness of price pressures in other areas, which supports our view that the RBA won't raise interest rates at all next year
• the RBA will view the rise in utilities prices as a hit to households' spending power rather than a sign that inflation pressures are building
• subdued demand and intense competition is keeping a lid on inflation across the economy. That won't change soon.
• These data support our view that the economy won't be strong enough to raise underlying inflation to the middle of the RBA's 2-3% target. What's more, these data overstate the true rate of inflation a bit. From the fourth quarter, when the ABS updates the spending weights in the CPI basket, inflation will be a bit lower than otherwise.

(bolding is mine)