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27 Apr 2016
Australia's Q1 inflation shockingly low, RBA rate cut in the cards
Australia's Q1 2016 CPI reads surprised to the downside, which now strengthens the case for the RBA to potentially cut rates in coming months.
Main headlines
Australia RBA trimmed mean CPI (QoQ) came at 0.2% vs +0.5% and +0.6% last
Australia RBA trimmed mean CPI (YoY) stood at 1.7% vs 2% exp and 2.1 last.
Australia Consumer Price Index (QoQ) came in at -0.2% vs 0.2% exp and +0.4% last
Australia Consumer Price Index (YoY) came at 1.3% vs 1.7% exp and 1.7% last
Key points Q1 2016
THE ALL GROUPS CPI: fell 0.2% this quarter, compared with a rise of 0.4% last quarter. rose 1.3% over the twelve months to the March quarter 2016, compared with a rise of 1.7% over the twelve months to the December quarter 2015.
OVERVIEW OF CPI MOVEMENTS: The most significant price falls this quarter are automotive fuel (-10.0%), fruit (-11.1%) and international holiday travel and accommodation (-2.0%). The most significant offsetting price rises this quarter are secondary education (+4.6%), medical and hospital services (+1.6%) and pharmaceutical products (+4.8%).
Main headlines
Australia RBA trimmed mean CPI (QoQ) came at 0.2% vs +0.5% and +0.6% last
Australia RBA trimmed mean CPI (YoY) stood at 1.7% vs 2% exp and 2.1 last.
Australia Consumer Price Index (QoQ) came in at -0.2% vs 0.2% exp and +0.4% last
Australia Consumer Price Index (YoY) came at 1.3% vs 1.7% exp and 1.7% last
Key points Q1 2016
THE ALL GROUPS CPI: fell 0.2% this quarter, compared with a rise of 0.4% last quarter. rose 1.3% over the twelve months to the March quarter 2016, compared with a rise of 1.7% over the twelve months to the December quarter 2015.
OVERVIEW OF CPI MOVEMENTS: The most significant price falls this quarter are automotive fuel (-10.0%), fruit (-11.1%) and international holiday travel and accommodation (-2.0%). The most significant offsetting price rises this quarter are secondary education (+4.6%), medical and hospital services (+1.6%) and pharmaceutical products (+4.8%).