Australia: Headline CPI expected at 0.6%qtr - Westpac

Analysts at Westpac expect Australia’s Q2 Consumer Price Index to rise by 0.6% compared to its previous reading of 0.5% and against the market consensus of 0.4%.

Key Quotes

“The Q1 CPI printed 0.5% for an annual rate of 2.1%yr compared to 1.5%yr in Q4, 1.3%yr in Q3 and 1.0%yr in Q2. The June quarter 2016 was the lowest rate of annual inflation since June 1999.”

“The core measures, which are seasonally adjusted and exclude extreme moves, rose 0.4% on average compared to the market’s expectation of 0.5% rise. The annual pace of the average of the core measures is now 1.8%yr from 1.5%yr in Q4 and Q3.”

“In the June quarter, a large Debbie boost to fruit plus a recovery in dwellings are offset by falling auto fuel. Westpac’s forecast for the headline CPI is 0.6%qtr lifting the annual pace to 2.4%yr from 2.1%yr. Core inflation is forecast to print 0.5%qtr (0.54% at two decimal places) holding the annual rate flat at 1.8%yr.”