Australia: Encouraging monthly CPI and construction activity data – ANZ

Analysts at Australia and New Zealand Banking Group (ANZ) express their view on a batch of Australian economic data released earlier this Wednesday.

Key quotes

“The monthly Consumer Price Index (CPI) indicator for July 2023 was below the market and our expectation of 4.9% y/y, which is an encouraging development ahead of Q3 CPI. While electricity prices jumped in July (6.0% m/m including rebate impacts) and rents continued to accelerate, the annual increase in overall housing costs was broadly stable (7.3% y/y in July vs 7.4% in June).“

“Total construction work done rose 0.4% q/q, relatively close to our expectation of a 0.2% q/q increase.”

“In short, growth in construction work done waned in the June quarter, albeit after a stronger March quarter result.”