Australia’s CPI accelerated more than expected in October, rising from 3.5% yoy to 3.8%, beating expectations of 3.6%. Underlying pressure also firmed, with trimmed mean CPI moving up from 3.2% to 3.3%.
Both goods and services inflation picked up, with annual goods inflation at 3.8% (up from 3.7%) and services inflation at 3.9% (up from 3.5), signaling renewed price momentum. The combination will keep the RBA wary of easing again too soon.
The details showed broad-based increases. Housing costs was the largest contributor at 5.9%, followed by food and non-alcoholic beverages at 3.2%, and recreation and culture at 3.2%.
The release is also notable as the first in which Monthly CPI replaces the quarterly gauge as Australia’s primary headline measure.
