Australia CPI Preview: Forecasts from seven major banks, rebound in inflation to continue

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Australia CPI Preview: Forecasts from seven major banks, rebound in inflation to continue
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Australian Consumer Price Index (CPI) figures will be released on Wednesday, October 25 at 00:30 GMT and as we get closer to the release time, here ar

e forecasts from economists and researchers of seven major banks regarding the upcoming inflation data. September CPI is expected at 5.4% vs. 5.2% in August. If so, it would be the second straight month of acceleration and further above the 2-3% target range. For Q3, CPI is expected at 5.3% YoY vs. the prior release of 6.0%, while Trimmed Mean is expected at 5.0% YoY vs. 5.9% in Q2. ANZ We expect headline CPI to print at 1.1% QoQ and trimmed mean inflation at 1.2% QoQ in Q3.

TDS We expect Sep annual CPI to edge higher from a rise in fuel prices and an increase in tobacco tax. Factoring in our Sep f/c and the Jul/Aug prints, CPI trimmed mean probably showed price pressures picking up 1% in Q3 on a QoQ basis, slightly higher than the RBA's forecast of 0.9%. Acceleration in housing, utilities and transport costs are likely the culprits for Q3 inflation. SocGen We expect monthly headline inflation to have risen further, from 5.2% in August to 5.3% in September.

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