Australia: Q1 CPI likely to print 0.1% - Westpac

Justin Smirk, analyst at Westpac, suggests that they are forecasting the Australia’s March quarter CPI to print 0.1%qtr with the annual pace easing back to 1.4%yr from 1.8%yr.

Key Quotes

“The March quarter is a seasonally soft quarter with the ABS projecting a seasonal factor of +0.2ppt. The seasonally adjusted CPI is forecast to rise 0.3%.”

“Core inflation is forecast to print 0.3%qtr (0.33% at two decimal places) holding the annual pace at 1.6%yr. The trimmed mean is forecast to rise 0.34%qtr and the weighted median is forecast to rise 0.33%qtr.”

“Core inflation is to remain well below the bottom of the RBA target band as moderating housing costs hold back modest inflationary pressures elsewhere. Overlay a competitive deflationary pressure in consumer goods and it is hard to see core inflation breaking much higher any time soon.”