The news article reports that the Australian Consumer Price Index (CPI) for the month of August is 5.2% higher compared to the same period last year. This figure matches market expectations and represents an increase from the previous CPI of 4.9%. Additionally, the month-on-month (m/m) rise in August was 0.6%, up from 0.3% in July.
In terms of core measures, the August CPI, excluding Fruit and vegetables, Automotive fuel, and Holiday travel and accommodation, recorded a y/y increase of 5.5%, lower than the previous month’s figure of 5.8%. This decline in underlying inflation is likely to be welcomed by the Reserve Bank of Australia (RBA). Furthermore, the Trimmed mean CPI, which provides an average measure of price changes after removing the most extreme price movements, stood at 5.6%.
Overall, the Australian August monthly CPI indicates that inflation in the country remains relatively high, in line with expectations. However, the decrease in underlying inflation, as reflected in the core measures, may offer some relief to the RBA. It suggests that certain sectors, such as fruit and vegetables, automotive fuel, and holiday travel and accommodation, have not experienced as significant price increases as initially anticipated. Nevertheless, the overall inflation rate remains a point of attention for policymakers and economists in Australia.
