Private sector inflation measure speeds up in October; effect of rebates fades

Summary: Melbourne Institute Inflation Gauge index up 0.3% in October; up 3.0% on annual basis; Westpac: reflects unwinding of first instalment of electricity rebate; short-term ACGB yields steady, longer-terms yields rise; rate-cut expectations largely unchanged, February cut not especially likely. The Melbourne Institute’s Inflation Gauge is an attempt to replicate the ABS consumer price index (CPI) on a monthly basis. It has turned out to be a reliable leading indicator...

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