The Melbourne Institute Inflation Gauge rose during January for the sixth month in a row. This latest reading indicates consumer prices rose by 0.6% for the month and 2.1% for the year to the end of January. December’s comparable figures were 0.5% and 1.8% respectively.
Bond yields fell on the day and the AUD was slightly weaker against the USD. However, as December retail sales figures and ANZ job advertisement reports were released on the same day, it is problematic to say how each report was received. The yield on 3 year bonds was 2bps lower at 1.98% while the yield on 10 year bonds was down 3 bps to 2.795%.
