A better result, matching January and lower than the estimate.
3.4% y/y in February
- expected 3.5%, prior 3.4%
- for the m/m the result is +0.5% vs. +0.4% in January
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The ‘core’ Trimmed Mean reading is 3.9% y/y, up from 3.8% in January.
The CPI excluding volatile items** and holiday travel is 3.9% y/y , from 4.1% in January.
Sheesh, if you want ugly, pick the trimmed mean. If you don’t want not so ugly, pick the “excluding volatile items** and holiday travel” (whatever that means … why holiday travel?). Still, both of those measures of underlying inflation are above the headline rate. Australia is not out of the woods yet on high inflation. Stickier than a February afternoon in Darwin it is (its hot and humid in Darwin most of the time in summer).
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The monthly CPI data from Australia does not show all components of the CPI, that’ll have to wait for the quarterly data release.
- The monthly CPI indicator does, however, provide a timelier indication of inflation using the same data collected for use in the quarterly CPI. The monthly reading includes updated prices for between 62 and 73 per cent of the weight of the quarterly CPI basket, its not the full picture.
The quarterly CPI reading for the January – March quarter is due on Wednesday 24 April 2024.