Inflation in Australia
Australia - Inflation
Inflation at over three-decades high in Q3
Annual inflation came in at 7.3% in Q3, up from Q2’s 6.1%, hitting the highest reading since Q2 1990 and beating market expectations. Therefore, inflation moved further above the Reserve Bank’s 2.0%–3.0% target band. The main drivers of the acceleration were housing and food.
Meanwhile, consumer prices soared 1.8% over the previous quarter in Q3, matching Q2’s jump.
Commenting on the short-term implications for monetary policy, Robert Carnell, regional head of research for Asia-Pacific at ING, stated:
“At their October meeting, the RBA dropped the pace of their tightening to 25 basis points, hinting that they would prefer to move ahead at a slower pace as they pushed rates into restrictive territory. Today's inflation data suggest that this moderation may prove short-lived. It is hard to see how the RBA can ignore such an outsized miss on inflation, even though they have been clear in their statements that they didn't think inflation had yet peaked. This inflation data adds pressure on the RBA to revert to a 50bp tightening pace next month..”
Our panelists see inflation averaging 6.5% in 2023 and 4.6% in 2024.
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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December 2, 2022
Retail sales fell 0.2% in month-on-month seasonally-adjusted terms in October, contrasting September’s 0.6% increase. Looking at the details of the release, department store sales, household goods retailing, and clothing and footwear sales contracted, as did cafes, restaurants and takeaway food services sales.
November 17, 2022
Seasonally-adjusted employment increased by 32,200 in October, following 3,800 jobs shed in September.
November 9, 2022
The Westpac-Melbourne Institute consumer sentiment index decreased to 80.0 in November from 83.7 in October.
November 9, 2022
The business confidence index produced by National Australia Bank (NAB) dropped to 0.2 in October from 4.5 in September.
November 4, 2022
Retail sales expanded 0.6% in month-on-month seasonally-adjusted terms in September, matching August’s increase. Looking at the details of the release, food retailing and clothing and footwear sales expanded, as did cafes, restaurants and takeaway food services sales.