Inflation falls faster than expected, with December 2023 data released

It should be noted that upside risks to inflation outlook remain, with the Middle East conflict and the sustained recovery in the housing market, writes Brendan Rynne.

Inflation has fallen faster than expected, down to 4.1 percent in December from 5.4 percent in the September quarter, almost ensuring no rise in the cash rate next week by the Reserve Bank of Australia (RBA) - which had anticipated Wednesday's figure being 4.5 percent. Services inflation, which has been cited as a major concern to the RBA, also softened considerably and, importantly, the trimmed mean figure, the RBA’s preferred measure of core inflation, also fell from 5.1 percent annually t...

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Authors: Brendan Rynne

Published Date: 01 February 2024