November CPI Preview

• The key domestic event today is the November CPI release at 11:30am, expected to be a major driver for local markets through the session.
• Market consensus looks for headline inflation to print at 3.6% y/y, keeping inflation pressures elevated.
• The monthly trimmed mean is expected to hold near 3.3% y/y, remaining well above the 2.5% midpoint of the target range referenced by the Reserve Bank of Australia.
• While the monthly CPI now represents a full inflation read, policy focus remains on the Q4 trimmed mean, due alongside the December data on 28 January.
• Near-term volatility in headline inflation continues to reflect the timing of electricity rebates and swings in travel and accommodation prices.