Tuesday, April 24

CPI Q1 2012

Wow! Was that the sound of the CPI hitting the floor? Headline CPI grew at 0.1 per cent Q/Q to be 1.6 per cent higher through the year (tty). Core inflation, grew at 0.35 per cent Q/Q to be 2.15 per cent high through the year. [Source: ABS Consumer Price Index for Q1 2012].

Ladies and gentlemen, I think it safe to say that we have a rate cut come the first Tuesday in May. Big question is: How much of a rate cut?

Let's start with the charts of most interest to the RBA: the core inflation rate.

The headline result ... note the impact of seasonal adjustment ...

Goods versus services ... bit of a spider here if the AUD falls significantly ...

Tradable versus non-tradable ... the "what happens if the AUD declines significantly spider" is even more evident here ...

CPI growth by city


  1. Stumbled on your blog through the guys at MacroBusiness. Great stuff. Just a short request - can you put a note with the data sources (even links or at least top level domains) for each chart? I know this is pretty obvious for ABS watchers, but you always put up a lot of interesting stuff, and others would be interest in seeing the raw data as well.


  2. Good point - added the link to the first paragraph.