Australia CPI slowed to 0.5% qoq in Q3, down from Q2’s 0.6% qoq, but matched expectations. Annually, CPI rose to 1.7% yoy, up fro 1.6% yoy and matched expectations. RBA trimmed mean CPI rose 0.4% qoq, 1.6% yoy, matched expectations.
ABS Chief Economist, Bruce Hockman said: “Annual inflation remains subdued partly due to price rises for housing related expenses remaining low, and in some cases falling in annual terms. Prices for utilities (-0.3 per cent) and new dwelling purchase by owner-occupiers (-0.1 per cent) both fell slightly through the year to the September 2019 quarter, while rents (0.4 per cent) recorded only a small rise”.
Westpac said that there was some AUD depreciation pass-through to inflation but there is no broader impact of wider inflationary pulse. There is little pressure on the RBA to cut again this year. And Westpac maintains the forecast of another cut in February 2020.
