As I posted earlier,

  • This is not the official and more comprehensive quarterly data but it is a focus.
  • In a nutshell, what we'll get today will be skewed towards 'goods' inflation, not 'services'. Its services inflation that is most problematic for the RBA (and for many other developed market central banks).
  • The monthly CPI data from Australia does not show all components of the CPI, that'll have to wait for the quarterly data release. The monthly CPI indicator does, however, provide a timelier indication of inflation using the same data collected for use in the quarterly CPI. The monthly reading includes updated prices for between 62 and 73 per cent of the weight of the quarterly CPI basket, its not the full picture.

January CPI comes in at +3.4% y/y

  • expected 3.6%, prior: 3.4%
  • the trimmed mean (core) has come in at 3.8% y/y (prior 4.0%)
  • the m/m has come in at 0.4% (prior -0.1%)
Australia January 2024 cpi monthly 2

Australia's downward drift for inflation is intact although the January y/y was the same as in December.