Australia | New spending patterns don’t change inflation outlook

Copy of Ipad Frame (20)

CPI inflation rates will remain volatile in 2021, with both headline and core
measures set to spike to the top of (or possibly above) the RBA’s target range
in Q2 2021. But these movements will be more indicative of pandemic-related abnormal price changes in 2020 than developments in 2021; the RBA will ‘look through’ these movements in their interest rate decisions.

Download the report to find out:

  • What the underlying inflation outlook is for Australia
  • How spending patterns are reflected in CPI weights 
  • The impact weak wage growth will have on services inflation
Back to Resource Hub

Related Services

Post

Why an ageing population doesn’t mean soaring inflation

What’s the future for inflation? Joachim Nagel, the new president of Germany's central bank, believes the rapidly ageing global population will play a key role – ramping up pressure on prices in the medium term. While we agree slowing labour supply will stifle output growth, in his recent discussion Nagel failed to fully consider the demand side of the argument.

Find Out More

Post

Surging global food prices could drive eurozone core inflation higher

Along with energy prices, global food prices have emerged as a key driver of the eurozone's current inflationary surge. Like other advanced economies, eurozone countries tend to be less exposed to global food price fluctuations. But if persistent and combined with strong demand, high food prices could result in a higher pass-through to core inflation.

Find Out More