PT Solid Gold Berjangka | Australia’s Monthly Inflation Rate Steady at 3.4% in January
Ekonomi Australia CPI y/y PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | Thank you for sharing the update on Australian inflation and the Reserve Bank’s considerations. Here is a summary:
- In January, Australian inflation remained steady, with the consumer price indicator advancing 3.4% from a year earlier. This was below economists’ estimates of 3.6% and unchanged from December, according to data from the Australian Bureau of Statistics.
- Excluding volatile items, the annual rise was 4.1%, down slightly from December’s 4.2% but still above the Reserve Bank of Australia’s (RBA) 2-3% target band.
- This steady inflation supports the case for the RBA to begin cutting interest rates later in the year. Currently, borrowing costs are at a 12-year high of 4.35%.
- Earlier in the month, the RBA considered hiking rates further due to aggregate demand remaining above the economy’s supply potential, which raised concerns about inflation not returning to target within a reasonable timeframe. However, they decided to keep rates on hold amid signs of a broader economic slowdown moderating price pressures.
- Economists predict that the RBA could start an easing cycle as early as August.
- Bloomberg economist James McIntyre notes that lingering upward pressure from housing rents, insurance, and household utility bills could keep inflation “on the heated side.”
- The RBA’s own forecasts suggest that inflation may only fall back within the target range by December 2025.
This data will be crucial for the RBA’s deliberations at its upcoming March meeting, along with the fourth-quarter GDP numbers due next week. The central bank is expected to stay on hold and maintain its tightening bias to ensure inflation expectations remain contained.
Source: Bloomberg