26.06.24
Prices stopped sliding five month ago when CPI has reached 3.4% annualized and since then they have been creeping up to 3.6% in April. Today quick jump to 4% took the market by surprise and reinforced the chances for rate hike this year.
RBA will watch closely quarterly CPI data to be released in the end of July as it is vigilant on ‘upside risks’. Next RBA meeting is scheduled on August and opinions are now divided on whether policy will be tightened or not.
On the other hand labor market shows signs of easing and this will help RBA to withstand from rate increases.