Australia | New spending patterns don’t change inflation outlook

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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
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