Australian Q2 CPI misses expectations, RBA trimmed mean in line

Australia's headline inflation figures came worse-than-expected, while RBA's trimmed mean inflation readings were in line with expectations. The data is a negative in put for the Australian Dollar, which has fallen over 40 pips against the US Dollar before bouncing, last at 0.7910.

Headlines

RBA trimmed mean CPI (QoQ) (Q2)  came at 0.5% vs 0.5% exp and 0.5% last

RBA trimmed mean CPI (YoY) (Q2) came at 1.8% vs 1.8% exp and 1.9% last

Consumer Price Index (QoQ) (Q2)0 came at 0.2% vs.0.4% exp and 0.5% last

Consumer Price Index (YoY) (Q2) came at 1.9% vs 2.2% exp and 2.1% last

Q2 Key Points

THE ALL GROUPS CPI

• rose 0.2% this quarter, compared with a rise of 0.5% in the March quarter 2017.
• rose 1.9% over the twelve months to the June quarter 2017, compared with a rise of 2.1% over the twelve months to the March quarter 2017.

OVERVIEW OF CPI MOVEMENTS

• The most significant price rises this quarter are medical and hospital services (+4.1%), new dwelling purchase by owner-occupiers (+0.9%), tobacco (+1.0%) and beer (+1.0%).
• The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-3.2%), automotive fuel (-2.5%) and fruit (-4.4%).