CPI up 0.2% in March quarter

22 May 2015

CPI rose 0.2% in the March quarter 2015 to an annual 1.3%, following a rise of 0.2% in the December quarter 2014, in line with expectations. The trend data, at an annual rate 2.35%, was much stronger than expected and clouded the outlook for a May rate cut. Despite the CPI strength, most analysts still expect the RBA to cut rates at the next meeting. NAB is the one bank to have changed its mind with them now saying rates will stay on hold.