Australia's Q4 core CPI number surprised to the upside, against the widely-held belief that the recent disinflationary trend would continue, adding to the case of the RBA potentially holding to its neutral bias in the months to come, given the relatively firm outlook in prices.
Main headlines
Australia RBA trimmed mean CPI (QoQ) above expectations (0.5%) in 4Q: Actual (0.7%)
Australia RBA trimmed mean CPI (YoY) in line with forecasts (2.2%) in 4Q
Australia Consumer Price Index (YoY) below expectations (1.8%) in 4Q: Actual (1.7%)
Australia Consumer Price Index (QoQ) came in at 0.2%, below expectations (0.3%) in 4Q
Key points Q4
THE ALL GROUPS CPI: Rose 0.2% in the December quarter 2014, compared with a rise of 0.5% in the September quarter 2014. rose 1.7% through the year to the December quarter 2014, compared with a rise of 2.3% through the year to the September quarter 2014.
OVERVIEW OF CPI MOVEMENTS: The most significant price rises this quarter were for domestic holiday travel and accommodation (+5.8%), tobacco (+4.8%) and new dwelling purchase by owner-occupiers (+1.1%). The most significant offsetting price falls this quarter were for automotive fuel (-6.8%), audio, visual and computing equipment (-5.2%) and audio, visual and computing media and services (-3.8%).
Main headlines
Australia RBA trimmed mean CPI (QoQ) above expectations (0.5%) in 4Q: Actual (0.7%)
Australia RBA trimmed mean CPI (YoY) in line with forecasts (2.2%) in 4Q
Australia Consumer Price Index (YoY) below expectations (1.8%) in 4Q: Actual (1.7%)
Australia Consumer Price Index (QoQ) came in at 0.2%, below expectations (0.3%) in 4Q
Key points Q4
THE ALL GROUPS CPI: Rose 0.2% in the December quarter 2014, compared with a rise of 0.5% in the September quarter 2014. rose 1.7% through the year to the December quarter 2014, compared with a rise of 2.3% through the year to the September quarter 2014.
OVERVIEW OF CPI MOVEMENTS: The most significant price rises this quarter were for domestic holiday travel and accommodation (+5.8%), tobacco (+4.8%) and new dwelling purchase by owner-occupiers (+1.1%). The most significant offsetting price falls this quarter were for automotive fuel (-6.8%), audio, visual and computing equipment (-5.2%) and audio, visual and computing media and services (-3.8%).
