The inflation surge is over so why is it still so sticky?

The RBA will most likely sit on its hands for the next couple of meetings as it continues to assess the ideal timing for starting to ease the cash rate from current contractionary settings, writes Brendan Rynne.

The latest monthly consumer price index (CPI) figures – with inflation in February remaining steady at 3.4 percent - reaffirms KPMG’s view that the inflation surge is now over and, despite the Reserve Bank of Australia’s (RBA) cautious ‘nothing’s off the table’ message, the next interest rate move will be down – the question now is just when. The February CPI data incorporates a lot more information than the January reading, and while inflation is still above target – and remaining static ra...

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Authors: Brendan Rynne

Published Date: 28 March 2024