The Melbourne Institute Inflation Gauge rose again during November for the fourth month in a row.
This latest reading indicates consumer prices rose by 0.1% for the month and 1.5% year on year. October’s comparable figures were 0.2% and 1.5% respectively.
3 year and 10 year bond yields both finished lower on the day. 3 year yields fell 4bps to 1.95% while 10 year yields fell 7bps to 2.76%. It is worth noting ANZ Job Advertisements were also released on the same day so to suggest the Inflation Gauge numbers were responsible for sending yields lower is debatable.
Last month we wrote how October’s robust number was some way from marking the end of inflation’s downtrend. November’s soft numbers are a reminder of why calling an end to a trend is a perilous venture.
