Earlier on the CPI from Australia for the January to March quarter of 2018

This now via ANZ (in brief, bolding mine)

The Q1 inflation ... provides further evidence that inflation is gradually improving

  • but remains well below the mid-point of the RBA's 2-3% policy target band
  • There were few surprises in the data
  • While the core measures were solid, it was a little disappointing to see the ANZ Diffusion Index slip back in the quarter and domestic market services inflation steady in annual terms.
  • From a policy perspective, the focus on making 'progress toward the mid-point of the band' suggests that we need to see inflation trending higher before policy is likely to be adjusted. With retail prices expected to continue to drag, a lift in inflationary pressures likely requires stronger wage growth to push domestic services inflation higher.
  • Given this, we continue to watch for signs of an acceleration in wage growth.

The Q1 inflation data will support the case that monetary policy is set to be on hold for some time to come - we continue to see the cash rate steady at 1.5% until May 2019

More:

  • Tradable prices fell by 0.4% q/q
  • non-tradable prices rose by 0/8% q/q
  • CPI ex volatiles (sa) was a touch weaker in the quarter, rising by 0.4% q/q and 1.9% y/y. And the ANZ Diffusion Index slipped back a touch, with 31% of the items rising by more than 2.5% quarterly annualised, but remains well off recent lows
  • Our preliminary CPI forecast for Q2 2018 is for headline inflation to rise by 0.5% q/q, with core inflation also rising by 0.5% q/q.