Australia's core inflation lifted in Q2 – ANZ

Dhwani Mehta FXStreet

Analysts at Australia and New Zealand Banking Group (ANZ) offer their afterthoughts on the Australian second-quarter CPI release.

Key quotes

“Headline Q2 inflation lifted to a very strong 0.8%, which saw annual headline inflation surge above the RBA’s target band for the first time in a decade. This move is expected to be temporary though, and inflation will soon start to slow over the coming quarters.”

“The trimmed mean inflation also lifted, though to a more subdued 0.5% q/q. We expect trimmed mean inflation to return to the target band in H2 2022 and rise from there, triggering cash rate hikes in H2 2023. “

“With the annual figure some way below 2%, the underlying message is that inflation is still a long way from where the RBA wants it to be.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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