26 Mar 2015
Australia headline CPI might sharply fall in Q1 – Capital Economics
FXStreet (Barcelona) - Economists at Capital Economics, explain that the headline CPI inflation in Australia on its track to see a sharp fall in Q1 to around 0.8% from previous 1.7%.
Key Quotes
“The most recent rises in petrol prices have done little to change our view that headline CPI inflation in Australia will fall sharply in the first quarter, to around 0.8% from 1.7% in fourth quarter.”
“The various underlying measures of inflation may fall too, to just above 2.0% from just below 2.5%.”
“Despite rising in recent weeks, petrol prices are on course to fall by 10% q/q in the first quarter. That’s enough to reduce overall consumer prices by 0.5%.”
“The latest moves in rural commodity prices suggest that a small rise in food prices will keep the annual rate of food inflation close to 2%.”
“The lower dollar will soon start to boost core tradables/goods inflation. However, this will be offset by a weakening in core non-tradables/services inflation as the growth rate of unit labour costs remains low.”
Key Quotes
“The most recent rises in petrol prices have done little to change our view that headline CPI inflation in Australia will fall sharply in the first quarter, to around 0.8% from 1.7% in fourth quarter.”
“The various underlying measures of inflation may fall too, to just above 2.0% from just below 2.5%.”
“Despite rising in recent weeks, petrol prices are on course to fall by 10% q/q in the first quarter. That’s enough to reduce overall consumer prices by 0.5%.”
“The latest moves in rural commodity prices suggest that a small rise in food prices will keep the annual rate of food inflation close to 2%.”
“The lower dollar will soon start to boost core tradables/goods inflation. However, this will be offset by a weakening in core non-tradables/services inflation as the growth rate of unit labour costs remains low.”