Australian monthly CPI (October) 2.1% y/y (vs. 2.3% expected)

Comes in lower than expected at 2.1%

• expected 2.3%, prior 2.1%

The core reading, trimmed mean, has come in at 3.5% y/y … which is ugly

• up from the prior of 3.2%

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Preview of, and background to, this data point is here:

• Australian CPI due at the bottom of the hour – what to expect and why its not official

The TL;DR version is that the monthly CPI data from Australia does not show all components of the CPI, that’ll have to wait for the quarterly data release (late in January).

• 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.

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