Australia: Q4 CPI expected to accelerate to 1.6% from 1.3% - BBH

Research Team at BBH notes that the Australia reports Q4 CPI figures this week and the headline rate is expected to accelerate to 1.6% from 1.3%.  

Key Quotes

“Price pressures appear to be bottoming in Australia.  A 1.6% pace would be the fastest quarterly increase in 2016.  It was at 1.0% in Q2.  Rising price pressures appear to have dampened ideas that the central bank may still cut rates.  The RBA meets on February 6 and rates will most likely remain on hold.  Separately, Australia will report export and import prices, and it appears the terms of trade are improving, partly with the help of stronger iron ore prices.”