Australian July inflation data was published yesterday, dropping well under the median estimate:
ING on the result:
- The headline inflation rate has now fallen below 5% which will encourage thoughts that the RBA tightening cycle has peaked - though progress over the next few months will be harder. Our final 25bp rate hike call for 4Q23 is hanging by a thread
ANZ:
- The monthly Consumer Price Index (CPI) indicator for July 2023 was below the market and our expectation of 4.9% y/y, which is an encouraging development ahead of Q3 CPI.
- While electricity prices jumped in July (6.0% m/m including rebate impacts) and rents continued to accelerate, the annual increase in overall housing costs was broadly stable (7.3% y/y in July vs 7.4% in June).
