Australia CPI rose 0.7% qoq, 1.8% yoy in Q4, up from 0.5% qoq, 1.7% yoy, beat expectation of 0.6% qoq, 1.7% yoy. RBA trimmed mean CPI rose 0.4% qoq, 1.6% yoy, unchanged from prior quarter. RBA weighted median CPI rose 0.4% qoq, 1.3% yoy, also unchanged from Q3. The set of data affirmed the chance for RBA to stand pat in February, and delay the widely expected rate cut.
ABS Chief Economist, Bruce Hockman said: “Drought conditions are impacting prices for a range of food products. Food prices increased 1.3 per cent this quarter with price rises for beef and veal (+2.9 per cent), pork (+4.7 per cent), milk (+1.7 per cent) and cheese (+2.4 per cent). Both the impact from the drought and lower seasonal supply contributed to price rises for fruit (+6.8 per cent) this quarter.”
“Annual inflation remains subdued partly due to some price falls for housing related expenses. Through the year to the December 2019 quarter, price falls were recorded for utilities (-1.0 per cent) and new dwelling purchase by owner-occupiers (-0.1 per cent), while rent price rises remained modest (+0.2 per cent),” said Hockman.
