Back
22 Apr 2015
Australian CPI expected at the lower end of the RBA target band - Westpac
FXStreet (Bali) - Westpac is expecting today's Australian CPI figures, due at 1.30 GMT, to come at the lower end of the RBA target band.
Key Quotes
"Australia Q1 CPI will be released at 11:30am Syd/9:30am Sing/HK. The data will be of heightened interest given that the RBA said in its Apr minutes that it “saw advantages in receiving more data, including on inflation, to assess whether or not the economy was on the previously forecast path”. Westpac’s forecast is in line with market on the headline, 0.1% q/q (0.2% s.a.), 1.2% y/y but below consensus on the policy-sensitive average of the core measures."
"We look for 0.44%, the median is 0.55%. This would keep the average of the core measures at 2.2% y/y, at the lower end of the RBA target band. We are expecting inflation to be led by education, housing and health. While there was a late bounce in petrol prices, transport should still have the largest negative contribution. Falling fruit and vegetable prices and the usual post-Christmas discounting should also weigh."
Key Quotes
"Australia Q1 CPI will be released at 11:30am Syd/9:30am Sing/HK. The data will be of heightened interest given that the RBA said in its Apr minutes that it “saw advantages in receiving more data, including on inflation, to assess whether or not the economy was on the previously forecast path”. Westpac’s forecast is in line with market on the headline, 0.1% q/q (0.2% s.a.), 1.2% y/y but below consensus on the policy-sensitive average of the core measures."
"We look for 0.44%, the median is 0.55%. This would keep the average of the core measures at 2.2% y/y, at the lower end of the RBA target band. We are expecting inflation to be led by education, housing and health. While there was a late bounce in petrol prices, transport should still have the largest negative contribution. Falling fruit and vegetable prices and the usual post-Christmas discounting should also weigh."