Australia MI Inflation Gauge MoM

The Melbourne Institute's Monthly Inflation Gauge rose by 0.3% in October 2024, after a 0.1% increase in the previous month. It was the highest reading since July, coming ahead of the RBA's monetary policy meeting for November. While the central bank is expected to hold steady its cash rate at 4.35% for the eighth time, the board continued to view that inflation momentum, as represented by the trimmed mean, remains too high. Meanwhile, headline inflation may fall further but will not return to the 2 to 3% target until 2026. Australia's annual inflation fell to 2.8% in Q3 2024 from 3.8% in Q2, marking the lowest print since Q1 2021, with goods inflation sharply slowing while services inflation stayed elevated. The monthly CPI indicator rose by 2.1% yoy in September, softening from August's 2.7% gain and keeping within the central bank's target range for the second month. The RBA has indicated that data and the evolving assessment of risks will guide their future monetary decisions.