Australian monthly CPI (January) 7.4% (expected 8.1%)

Australian monthly CPI (January) drops to 7.4%

• expected 8.1%, prior 8.4%

Some encouraging news, indicating that maybe 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 in Australia has peaked. If so that is good news. Its still more than double the rate of the upper band of the Reserve Bank of Australia target range, which is 2 to 3%, so hold off on popping the champagne.

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Australia's monthly CPI Indicator is used as an, admittedly imperfect, guide to the quarterly CPI.

As I have posted before. Monthly inflation data from Australia is a proxy for the more thorough quarterly figure:

• it provides a more timely view on inflation
• but it is an incomplete update, only an approximation
• it covers around 60% of price updates, and only applies to the first month of the Jan, Feb, March quarter (d'uh)
• analysts point to especially poor coverage of market services components of the inflation basket this month (January)