“Inflation is not dead. It is just resting.”

27 January 2016

 

The December quarter CPI was released this week showing a headline quarterly rate of inflation of +0.4% (seasonally adjusted) or 1.7% for the year to the end of December. This surprised markets which were expecting 0.3% for the headline rate and an annual inflation of 1.6 per cent. The “core” or underlying rate, the RBA’s preferred measure of inflation that strips out volatile food and energy prices, recorded an average...

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