TD Securities monthly inflation data is out and has jumped to 0.4% from 0.2% last month. Year on year is now 2.8% up from 2.7% last month and the trimmed mean up 0.5% mom and 3.1% yoy.
Annette Beacher is positively beside herself:
“This first taste of the June quarter reveals an alarming jump in headline and trimmed mean inflation, of which only a portion can be attributed to seasonality. This unwanted inflation, combined with a robust housing sector and signs that prior savings are re-fuelling consumption, suggests that the case for holding the cash rate at record low levels is no longer there”
I am much less alarmed but it’s going to make the approach to the August CPI figure interesting! The dollar is quite firm this morning.
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