The Melbourne Institute Inflation Gauge is a privately surveyed inflation indicator. it was the ‘go to’ for a guide to monthly inflation data for Australia prior to the Australian Bureau of Statistics introducing their monthly measure.
For October 2024:
+0.3% m/m (prior +0.1%)+3.0% y/y (prior +2.6%)
The jump will not be welcome news to the Reserve Bank of Australia.
The Gauge is not a definitive guide to inflation, but a rise of this magnitude, both m/m and y/y, will not be shrugged off/ Analysts are currently clustered around a February RBA rate cut expectation. Market prcingis for the first cut around May, instead.
Curent rates from the RBA webioste.
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ps The Bank meets this week, November 4 and 5.
No rate cut is expected:
The RBA meeting next week marks a year of unchanged cash rate at 4.35% – no cut until 2025Its unanimous, Reserve Bank of Australia to hold cash rate at 4.35% at next week’s meeting
This article was written by Eamonn Sheridan at www.forexlive.com.
