Australian Q3 2023 Headline CPI +1.2% q/q (vs. 1.1% expected)

Higher than expected inflation data from Australia. Right across all three measures:

• headline
• trimmed mean (a core inflation measure)
• weighted median (another core inflation measure)

The topside surprise on the headline and core measures of inflation will put pressure on the Reserve Bank of Australia to hike in November.

AUD/USD has jumped higher, and market pricing for a rate hike has also.

The ‘trimmed mean’ is the preferred measure of underlying, or core, inflation.

There is another core measure, the weighted median:

• 1.3% q/q vs. expected 1.0% and prior 1.0%
• 5.2% y/y vs. expected 5.0%, prior 5.5%

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RBA Gov. Bullock will be speaking tomorrow. Brace yourself from some added hawkishness:

• Reserve Bank of Australia Governor Bullock will be appearing in parliament after CPI data

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Background on today’s data:

• Preview: Australian official Q3 CPI data is due today, could cause the RBA some discomfort

• AUD traders – NAB says CPI data to be higher than RBA expects, forecast November rate hike
• The good news / bad news preview of Australia CPI data due Wednesday

• Preview of Australian Q3 CPI data due today – risks skewed to the upside

This article was written by Eamonn Sheridan at www.forexlive.com.