The Reserve Bank, which aims for the midpoint of a 2%-3% CPI target, is focused on core inflation because government subsidies are suppressing headline prices. Trimmed mean CPI hasn’t been inside the band since the end of 2021.
Australia’s core inflation eased by more than expected in the final three months of 2024, opening the door to an interest-rate cut as soon as next month and sending the currency lower.
The annual trimmed mean gauge of consumer prices, which shaves off volatile items, rose 3.2% in the three months through December, compared with an expected 3.3% gain, data from the Australian Bureau of Statistics showed Wednesday. On a quarterly basis, consumer prices rose 0.5% versus a forecast 0.6%.
