Australia's August CPI Report Set to Shape RBA's Next Move
Australia's August Consumer Price Index (CPI) report is set to release on Wednesday, September 30 at 01:30 GMT, just one day after the Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points.
The forecast for headline CPI is a significant 4.0% year-over-year increase, up from 3.5% in the previous reading. On a monthly basis, prices are expected to rise by 0.4%, a slower pace than the 1.0% recorded previously.
The trimmed mean measure, which strips out extreme price movements, is expected to hold at 3.6% year-over-year, unchanged from the prior reading. This suggests underlying inflation remains elevated rather than accelerating.
A strong result in line with forecasts could support further tightening by the RBA, while a softer outcome would raise doubts about the need for additional rate hikes. The distinction between headline and underlying figures is crucial, as a beat in one area alongside a miss in the other would send mixed signals.