PPI Q1 2012

The final stage Producer Price Index (excluding exports) for Q1 2012 was -0.3 percent Q on Q and 1.4 per cent through the year.

Last Friday's print of the Import Price Index for Q1 2012, was -1.2 per cent Q on Q and 2.1 per cent through the year. On these two results, I suspect most pundits are anticipating a benign (0.6 per cent Q on Q or lower) print for tomorrow's underlying Consumer Price Index (ie. the average of the weighted median and trimmed mean results). The argument might even be whether the RBA cuts official interest rates by 25 or 50 basis points come the first Tuesday in May.

Even the domestic inflation pipeline is looking benign.