Australian headline CPI 1.8% q/q (expected 1.6%)

AUD has popped a little higher on the higher-than-expected inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term data

The 'trimmed mean' is a core measure - the RBA target band for core inflation is 2 to 3 %.

Another of the core measures is the weighted median that has come in at +1.4% q/q and 5% y/y.

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Expectations are for the Reserve Bank of Australia to raise its cash rate by 25bp next week, the meeting is November 1.

This hotter-than-expected data today will increase the prospects of a 50bp rate hike instead. Given the RBA has said they expect inflation to get worse before it gets better I suspect this print today is not enough to trigger them to +50bp next week. But I wouldn't bet the farm on that. This is an ugly print, the trimmed mean at 1.8% q/q is a decent-sized jump.The RBA meet on November 1 and then again on December 6, two 25bp hikes are baked in at least. The meeting following December is in February (the RBA does not meet in January).