More Inflation Shenanigans: Will The Next Rate Move Be Up, Not Down?

Rate cuts anytime this year in Australia, are now hanging by a thread, given the latest inflation data came in hotter than expected, despite the annual rate falling thanks to base effects from months ago, and some changes in the weightings. The upside surprise came via a smaller than expected fall in utilities, but stronger than expected increases in health, car prices and insurance. Sticky inflation has become a reality, leaving the RBA board’s decision last month to abandon its stated tightening bias looking premature. Most concerning for the RBA will be the surprising strength in trimmed mean inflation, its […]