Australian November monthly inflation is expected to jump from October

I popped up a post earlier that contains a detailed description of the difference between the monthly and quarterly inflation, and also why the quarterly is preferred.

The post also had a quick rundown on recent inflation data and implications for the Reserve Bank of Australia. ICYMI:

• Economic calendar in Asia Wednesday, January 8, 2025 – Australian inflation data

Commonwealth Bank of Australia have a good preview posted, In brief:

We anticipate headline inflation rose to 2.6%/yr in November, a ½ppt

rise from

the

pace in

October. The annual trimmed mean measure of core inflation is expected to

have

ticked down a touch to

3.

4

%/yr

from 3.5%/yr

.

This configuration of

a

solid

lift

in

headline

CPI

but

a

slightly lower

core inflation

figure

predominantly reflects the inflationary impact of the gradual unwind of the electricity

rebates

.

This unwind will

occur through to July 2025

, as currently legislated

.

• We anticipate headline inflation rose to 2.6%/yr in November, a ½ppt rise from the pace in October.
• The annual trimmed mean measure of core inflation is expected to have ticked down a touch to 3. 4 %/yr from 3.5%/yr .
• This configuration of a solid lift in headline CPI but a slightly lower core inflation figure predominantly reflects the inflationary impact of the gradual unwind of the electricity rebates . This unwind will occur through to July 2025 , as currently legislated.

Impact:

Markets may

knee

–

jerk

react to a higher headline print

, particularly after the most

recent jobs report

• Markets may knee – jerk react to a higher headline print , particularly after the most recent jobs report

CBA are well above the consensus forecast:

This article was written by Eamonn Sheridan at www.forexlive.com.