The latest Inflation Gauge reading for June indicates consumer prices rose 0.6% during the month.
Petrol prices rose 7.6%, travel and accommodation prices rose 7.4% and fruit and vegetable prices rose 6.4%, while items whose prices fell did so in very small amounts. On the day, yields implied by 2 year bond futures rose by 5bps to 1.51% while the implied 10 year yield rose 6bsp to 2.02%.
12 month inflation (blue line below) reversed the course set in the last few months and rebounded back to 1.5% after reading 1.0% for the year to May. The trimmed mean measure of the Inflation Gauge rose by 0.2 per cent in June, after falling by an equivalent amount in May.
Dr Sam Tsiaplias, Senior Research Fellow at the Melbourne Institute, pointed to petrol prices and forecast the next CPI figures released later this month would be positive. “Given this rise, it seems unlikely that we will get a repeat of last quarter’s negative CPI result for the current quarter… Both trimmed mean inflation and the inflation gauge excluding volatile items rose this month, although they are still below their long‐term averages.”
