Inflation undershoots again

From the ABS. Markets expected 2.3% but got 2.1%.

The monthly CPI indicator rose 2.1% in the 12 months to October.
The most significant price rises at the Group level were Food and non-alcoholic beverages (+3.3%), Recreation and culture (+4.3%), and Alcohol and tobacco (+6.0%). Partly offsetting the annual increases in other Groups was Transport (-2.8%).

An even wider gap between headline and trimmed mean!

Here’s the full readout with falls dominated by energy. I’m guessing the monthly figure will be around zero.

So long as energy rebates are renewed and increased in 2025, the RBA should be cutting.

We’re at the bottom of the band in annulaised terms and administered prices will follow headline down from here (education, health, booze, smokes etc).

Bullock and Chalmers are about to go to war.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.