July to September inflation data (reminder, the RBA target for core inflation is 2 to 3% y/y).
Headline 1.6% q/q
expected 1.5% q/q, prior -1.9%
For the y/y 0.7%
expected 0.6%, prior -0.3%
Core inflation:
Trimmed mean 0.4% q/q
expected 0.3% q/q, prior -0.1%
And for y/y, comes in at 1.2% vs. expected 1.1% y/y, prior 1.1%
Core inflation:
Weighted median 0.3% q/q
expected 0.3% q/q, prior 0.1%
and 1.3% y/y vs. expected 1.3% y/y, prior was 1.3%
In Q2 at the height of lockdown restrictions, Australia brought in free child care, in Q3 it was returned to paid service and added 0.9% to the headline result.
The twin core measures are both way below the RBA's target. Only this month the RBA changed their policy to look at actual inflation (ie figures like those just out) instead of their (laughably erroneous) forecasts for where inflation was going. These result today thus cement the further easing to come at the November 3 policy meeting. Yesterday I posted a preview of this policy meeting, highlighting a new and creative way for the RBA to fumble the ball at this meeting: RBA monetary policy meeting November 3 - preview
