The Meaninglessness Of Our Inflation Data!

Today we got the latest from the ABS on their inflation series, with Australia’s core inflation cooling in the three months through June as the closely-watched trimmed mean gauge of consumer prices, which shaves off volatile items, advanced 0.6% in the second quarter from three months earlier, weaker than the 0.7% forecast, data from the Australian Bureau of Statistics showed Wednesday. On an annual basis, it rose 2.7%, matching forecasts and down from 2.9% in the first quarter. Recall that the RBA focuses on core inflation because government rebates are suppressing the headline reading, muddying its view of price pressures […]