22 Jan 2014
Australian inflation picking up more than RBA may wish for...
FXstreet.com (Bali) - Australia's CPI numbers (QoQ/YoY) came at +0.8% and +2.7% in Q4 vs +0.4% and 2.4% expected, respectively. The ‘trimmed mean’ (measure the RBA focus the most), came at +0.9% and +2.6%(QoQ and YoY) vs 0.6% and 2.3% expected, respectively.
Main take away
The data should provide support for the Australian Dollar, as the RBA gets caught in a bad position, with the high CPI numbers not allowing the bank much room to ease further. That being said, most AUD rallies this year, even on 'good data' have proven short-lived, well challenged by well camped sellers.
Q4 key points
THE ALL GROUPS CPI: rose 0.8% in the December quarter 2013, compared with a rise of 1.2% in the September quarter 2013. rose 2.7% through the year to the December quarter 2013, compared with a rise of 2.2% through the year to the September quarter 2013.
OVERVIEW OF CPI MOVEMENTS: The most significant price rises this quarter were for domestic holiday travel and accommodation (+6.9%), fruit (+8.1%), vegetables (+7.1%), new dwelling purchase by owner-occupiers (+1.0%), international holiday travel and accommodation (+2.6%) and tobacco (+2.2%). The most significant offsetting price fall this quarter was for automotive fuel (-1.1%).
Main take away
The data should provide support for the Australian Dollar, as the RBA gets caught in a bad position, with the high CPI numbers not allowing the bank much room to ease further. That being said, most AUD rallies this year, even on 'good data' have proven short-lived, well challenged by well camped sellers.
Q4 key points
THE ALL GROUPS CPI: rose 0.8% in the December quarter 2013, compared with a rise of 1.2% in the September quarter 2013. rose 2.7% through the year to the December quarter 2013, compared with a rise of 2.2% through the year to the September quarter 2013.
OVERVIEW OF CPI MOVEMENTS: The most significant price rises this quarter were for domestic holiday travel and accommodation (+6.9%), fruit (+8.1%), vegetables (+7.1%), new dwelling purchase by owner-occupiers (+1.0%), international holiday travel and accommodation (+2.6%) and tobacco (+2.2%). The most significant offsetting price fall this quarter was for automotive fuel (-1.1%).