The Melbourne Institute Inflation Gauge rose again during December for the fifth month in a row. This latest reading indicates consumer prices rose by 0.5% for the month and 1.8% year on year. November’s comparable figures were 0.1% and 1.5% respectively.
3 year and 10 year bond yields both finished essentially unchanged. Both 3 year and 10 year yields remained steady at 1.99% and 2.73% respectively, while the AUD was slightly lower against the USD.
Readers will see from the chart above how the Inflation Gauge is an excellent estimator of annual CPI figures produced by the Australian Bureau of Statistics. Consumer inflation over the last five years has been edging down quite consistently, which has provided the RBA with an environment in which it could lower the official rate to a record low.