The Inflation Monster Stirs Again…

The latest monthly inflation read from the ABS shook analysts and markets, because it came in much hotter than expected. “It’s a very hot CPI print,” said Andrew Lilley, chief rate strategist at Barrenjoey. “It’s a lot hotter than anybody expected. The market will see this as inconsistent with the Reserve Bank of Australia cutting again.” That said The RBA’s favored trimmed mean measure, which smooths out volatile items such as food and energy, slowed to 2.6% in August from 2.7% in the prior month. The news prompted several banks to remove the number of interest rate cuts they had […]