Daily Flows & Insights – Australian Inflation Monthly Indicator Picks up

Daily Flows

  • The last day of the quarter has seen bespoke opportunities arise across the NCD and TD space.
  • With a long weekend also looming, banks are eager to bolster up cash reserves for expected outflows.
  • Those in the TD space can expect rates of at least 5.10% for 6 months, 5.20% for 9 months and 5.25% for 1 year.
  • NCD margins are dynamic, with banks willing to pay up to fill funding gaps.


Australian Inflation Monthly Indicator Picks up

  • The CPI monthly indicator showed annual inflation of 5.2% YoY, down from its December 2022 peak of 8.4% YoY.
  • Tightness in the rental market continues to be reflected in inflation data and insurance services inflation is tracking sideways.
  • The rebates introduced for energy has seen price pressure in this bucket ease.
  • Although there are base effects driving the 14% increase in fuel prices, most of this can be attributed to the rising price of oil.
  • CPI excluding volatile items printed at 5.5% YoY compared to 5.8% last month.
  • Economists do note that looking at the monthly change, this figure has increased by approximately 0.5% MoM.
  • Whilst the monthly indicator is a good basis to see how inflation is tracking, the RBA will look for clarity in the quarterly data.
  • It does not seem to warrant any major changes to current interest rate policy, however with a new Governor at the helm and concerns rising over the level of inflation markets will be watching the incoming data closely.
Share this entry
Curve Team
Jack Pedersen