Cliff Notes: The Promise of Disinflation
In Australia, the Q4 CPI printed 0.6% (4.1%yr) for headline inflation and 0.8% (4.2%yr) for core trimmed mean inflation, meaningfully lower than the RBA’s forecast of 4.5%yr across both indicators. The detail of the report confirmed disinflation’s pace is faster than expected and it has breadth. Indeed, the proportion of expenditure classes that are tracking a pace above 3.0%yr has fallen drastically, from 71% in September to 56% in December. The largest downside surprise in the quarter was utilities (0.6% vs. 5.0% forecast) – State Government rebates clearly still effective in shielding...
Source: actionforex.com