Australia Macro Updates

The One Stop Portal for Australia Macroeconomic Data. Simplified and Summarized!

We simplify and summarize key data so that you don’t have to spend hours reading confusing and long media releases. Read key economic releases and major events here in under 2 minutes. And we will explain the key takeaway for you. Stay informed and form a robust view on macroeconomic matters to aid your successful investment decisions

29th May 2024

Monthly CPI Indicator

Key takeaway: Inflation in Australia increased further in April after having posted a higher than consensus number in March as well. Recall that the, quarterly CPI indicator – which remains the key inflation gauge to monitor in Australia – had also posted a hotter than expected print for Q1 2024. Headline CPI accelerated from 3.5% to 3.6% in April. Core CPI, which excludes volatile items and holiday travel, also remained elevated at 4.1%. Finally, the trimmed mean measure also accelerated from 4.0% to 4.1%. Inflation has been mostly surprising to the upside in Australia. The conundrum also remains that consumption has been mostly sluggish. On the other hand, the labour market continues to be tight and the housing shortage continues to put pressure on home prices and rental rates. Rents continued to increase at an elevated rate of 7.5% according to the latest report in April. Similarly, new dwelling purchases by owner occupiers also remained high at 4.9%. With an overall tight labour market and a hotter than expected inflation print, the market is reassessing rate cut expectations wit a strong likelihood that Australia does not see any rate cuts till the end of the year.  

24th Apr 2024

Key takeaway: The quarterly CPI report remains the key inflation report to monitor in Australia. However, starting 2022, the Australian Statistics Bureau also starting publishing a monthly CPI report to provide more up to date, real time inflation readings in Australia. This month’s monthly inflation report coincided with the quarterly report release. 1Q 2024 inflation in CPI, even though on a downward trend, was reported higher than most participants expected. The monthly inflation report also indicated a similar story. Australia’s monthly CPI indicator increased slightly in March to 3.5% from 3.4% in February.Headline inflation has mostly been steady at this level for a few months now. Core inflation which excludes volatile items and holiday travel has also remained sticky around the 4.0% level. The annual trimmed mean also remains around the 4% level. These indicators remain above the 2-3% target level of the RBA. With an overall tight labour market and a hotter than expected inflation print, the market is reassessing rate cut expectations wit a strong likelihood that Australia does not see any rate cuts till the end of the year.  

27th Mar 2024

Key takeaway: Inflation in Australia has been easing similar to the rest of the world. Australia’s monthly CPI indicator held steady in February 2024 at 3.4%. However, this number was slightly lower than consensus expectations. Headline inflation has been steady at this level for 3 months in a row. Inflation has been falling since it peak since in December 2022 of 8.4%. However, similar to the US, market participants are keenly watching to see if it remains sticky at these levels. Similar to the US also, the housing sector has been a major contributor to inflation. New dwelling prices increased 4.9% in the 12 months to February. Rent inflation also remained high at  7.6%. The structural shortage in Australia’s housing market continues to reflect in the CPI data. Insurance and financial services CPI also continued to remain very high at 8.4%. On the balance though, the trend line for Australia’s CPI continues to be downwards.  

28th Feb 2024

Key takeaway: Inflation in Australia has been easing similar to the rest of the world. Australia’s monthly CPI indicator held steady in January 2024 at 3.4% – the same as the previous month of December 2023. The y-o-y CPI slowed from 5.6% in September to 4.9% in October and 4.3% November to 3.4% December and then held at the same level in January. Similar to the US and some other developed economies, the largest contributor to the annual CPI continues to be the housing component. Needless to say there are differences between each country on how the shelter component is calculated and computed into the CPI. New dwelling prices increased 4.8% in the 12 months to January. While the rate of growth has eased substantially from the high of 22% in mid 2022, it is still substantially high from the perspective of the Australian Reserve Bank. Rent inflation also remains high at  7.4%. The structural shortage in Australia’s housing market continues to reflect in the CPI data. Insurance and financial services CPI also continued to remain very high at 8.2%. On the balance though, the trend line for Australia’s CPI continues to be downwards.  

31st Jan 2024

Key takeaway: Australia’s monthly CPI indicator eased once again in December and this time by a very significant margin. The y-o-y CPI slowed from 5.6% in September to 4.9% in October and 4.3% November to finally the latest reading of 3.4% December. Similar to the US and some other developed economies, the largest contributor to the annual CPI continues to be the housing component. Needless to say there are differences between each country on how the shelter component is calculated and computed into the CPI. New dwelling prices increased 5.1% in the 12 months to December. While the rate of growth has eased substantially from the high of 22% in mid 2022, it is still substantially high from the perspective of the Australian Reserve Bank. Rent prices also accelerated from 7.1% November to 7.4% in December. The structural shortage in Australia’s housing market continues to reflect in the CPI data. Insurance and financial services CPI also continued to remain very high at 8.2%. On the balance though, the trend line for Australia’s CPI continues to be downwards.  

10th Jan 2024

Key takeaway: Australia’s monthly CPI indicator eased once again in November. The y-o-y CPI number which is released monthly slowed from 5.6% in September to 4.9% in October to 4.3% in the latest reading for November. Similar to the US and some other developed economies, the largest contributor to the annual CPI continues to be the housing component. Needless to say there are differences between each country on how the shelter component is calculated and computed into the CPI. New dwelling prices increased 5.5% in the 12 months to November. While the rate of growth has eased substantially from the high of 22% in mid 2022, it is still substantially high from the perspective of the Australian Reserve Bank. Rent prices also accelerated from 6.6% in October to 7.1% in November. The structural shortage in Australia’s housing market continues to reflect in the CPI data. On the balance though, the trend line for Australia’s CPI continues to be downwards.