The Australian inflation data was scorching, headline and underlying are both above the top of the RBA target band:
- Australia CPI (October) 0.0% m/m (-0.2% expected) & 3.8% y/y (3.6% expected)
- headline 3.8% y/y (!) and core 3.3% y/y
- the RBA band is 2-3%
- services inflation is 3.1% and goods 4.3%
There is no way the Reserve Bank of Australia is going to be considering interest rate cuts. With rising numbers why not rate hikes (this question will make me very unpopular indeed).
AUD jumped but has since come back. These numbers will be supportive, at the margin.
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There was data also for Q3 construction work, which contracted by 0.7%
- vs +0.3% expected
