Australia's Q2 CPI steadies at 0.4% q/q, misses estimates

Following the below expectations Australia's Q1 2018 CPI readings, today's inflation figures for the Q2 showed a mixed picture, with the headline figures missing expectations. The core figures matched expectations, pushing the annualized inflation rates just within the Reserve Bank of Australia’s (RBA) 2-3 percent target range.

Main Headlines

Q1 CPI headline q/q +0.4% vs 0.5% exp and 0.4% prior.

Q1 CPI headline y/y +2.1% vs 2.2% exp and 1.9% prior.

RBA trimmed mean +0.5% vs 0.5% exp and 0.5% last.

RBA trimmed mean y/y +1.9% vs 1.9% exp and 1.9% last.

June Key Figures

The All Groups CPI

• Rose 0.4% this quarter, compared with a rise of 0.4% in the March quarter 2018.
• Rose 2.1% over the twelve months to the June quarter of 2018, compared with a rise of 1.9% over the twelve months to the March quarter of 2018.

Overview of CPI Movements

• The most significant price rises this quarter are automotive fuel (+6.9%), medical and hospital services (+3.1%) and tobacco (+2.8%).
• The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-2.7%), motor vehicles (-2.0) and vegetables (-2.9%).