Australian CPI inflation came in at 2.8% this week on a quarterly basis, but that number was effectively distorted. Lower Brent Crude prices and the impact of Federal energy rebates helped to give us a ‘fake number’ – without rebates and the volatility of automotive fuel, ‘real inflation’ is considerably higher. That was evident in the Trimmed Mean Inflation (TMI) metric – Australia’s answer to “core inflation” – which was at 3.5% QoQ vs. 3.9% pcp. Housing remains the biggest driver of inflation upside in Australia; the RBA doesn’t have any magic fix for that and markets are now pushing rate c…
