Inflation in Australia
Australia - Inflation
Inflation at over five-year high at 2020 outset, sits within the Central Bank’s target band
In the first quarter of 2020, consumer prices rose 0.3% over the previous quarter following a 0.7% increase in the last quarter of 2019, according to the Australian Bureau of Statistics (ABS). The figure beat market expectations of a 0.2% increase although marked the slowest rise since Q1 2019. According to the ABS, Q1’s deceleration was mainly the result of falling prices for clothing and footwear; recreation and culture; and transport on the back of lower oil prices. These were only partially offset by a faster rise in prices for education and a rebound in health prices.
Inflation climbed to 2.2% in Q1 from Q4’s 1.8%, beating market expectations of a 2.0% inflation and marking the highest reading since Q3 2014. Therefore, inflation moved into the Reserve Bank’s 2.0%–3.0% target band. Regional variations persisted: Inflation came in between 1.5% and 2.7% everywhere excluding Hobart, where it logged 3.4%.
Our panelists see inflation averaging 1.2% in 2020 and 1.6% in 2021.
Australia - Inflation Data
|Inflation Rate (CPI, annual variation in %)||1.5||1.3||1.9||1.9||1.6|
5 years of economic forecasts for more than 30 economic indicators.
Australia Inflation Chart
Source: Australia Bureau of Statistics and FocusEconomics calculations.
|Bond Yield||1.37||1.47 %||Dec 31|
|Exchange Rate||0.70||0.05 %||Dec 31|
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July 7, 2020
At its monetary policy meeting on 7 July, the Reserve Bank of Australia (RBA) decided to keep the cash rate unchanged at an all-time low of 0.25%.
June 19, 2020
Preliminary data shows nominal retail sales in May skyrocketed at the fastest pace on record amid easing coronavirus lockdowns.
June 18, 2020
Seasonally-adjusted employment nosedived by 227,700 in May, following a revised record-high 607,400 job lost in April (previously reported: -594,300).
June 11, 2020
The Westpac-Melbourne Institute consumer sentiment index jumped to 93.7 in June from 88.1 in May, consequently recovering further ground from the index’s worst reading since February 1991 recorded last April.
June 9, 2020
The business confidence index produced by National Australia Bank (NAB) rose to minus 20.0 points in May, from minus 45.5 points in April.