Markets are getting set for the Consumer Price Index for Australia forth quarter. However, analysts at TD Securities explained that they don’t expect the CPI outcome will influence the RBA’s Feb rate decision.
- “The RBA forecasts headline to come in at 0.7%, placing annual headline at 1.9%.”
- “Driving the Q4 outcome is higher tobacco, petrol and food prices, accounting for ~half of the quarterly rise.”
- “The MI inflation gauge suggests core should remain subdued. We pencil in +0.4% q/q, +1.5% y/y as per the RBA f/c.”