Inflation in Australia
Australia - Inflation (end of period)
Inflation ticks up in Q1 2021
In the first quarter of 2021, consumer prices rose 0.6% over the previous quarter, following a 0.9% increase in Q4 2020. Q1’s increase was mainly the result of higher prices for transportation, health, clothing and footwear and communication.
Annual inflation came in at 1.1% in Q1, up from Q4 2020’s 0.9%. Therefore, inflation got closer to the Reserve Bank’s 2.0%–3.0% target band.
Commenting on the release, Robert Carnell, regional head of research at ING, stated:
“In 2Q21, the base comparison will be much starker, as Australia's CPI index fell 1.9% QoQ in 2Q20, so even if 2Q21 is another uninspiring quarter for price increases, we should still see the headline rate of inflation increase by about a further 2 percentage points, potentially pushing annual inflation slightly above the central bank's 2-3% inflation target. However, without a stronger pick up in the quarterly rates of CPI increase, this peak is likely to prove very short-lived. Third-quarter base comparisons reverse abruptly, with 3Q20 CPI increasing by 1.6%QoQ. So any spike in inflation above 3% in 2Q21 is unlikely to foster thoughts of any imminent changes to policy rates or quantitative easing schedules without a noticeable change in the underlying quarterly rates.”
Our panelists see inflation averaging 1.4% in 2021 and 1.6% in 2022%.
Australia - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||1.7||1.5||1.9||1.8||1.8|
5 years of economic forecasts for more than 30 economic indicators.
Australia Inflation (eop) 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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June 9, 2021
GDP rose 1.8% in seasonally-adjusted quarter-on-quarter terms in Q1, benefiting from strong fiscal and monetary stimulus.
June 6, 2021
At its monetary policy meeting on 1 June, the Reserve Bank of Australia (RBA) decided to keep the cash rate unchanged at the all-time low of 0.10%.
June 3, 2021
Nominal retail sales grew 1.1% month-on-month in seasonally-adjusted terms in April (March: +1.3% s.a.
May 20, 2021
Seasonally-adjusted employment decreased by 30,600 in April, following 77,000 jobs gain in March and surprising markets on the downside.
May 20, 2021
The business confidence index produced by National Australia Bank (NAB) jumped to 26.0 points in April from 16.7 points in March, marking a record-high reading.