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Australia CPI eyed for 4.0% as RBA hikes by 25 basis points

August headline inflation is forecast to accelerate to 4.0% year over year, while trimmed mean is expected to stay at 3.6%.

Reported · Written up by our desk · EM Currencies

Australia is set to release its August consumer price data on Wednesday, September 30, at 01:30 GMT, one day after the Reserve Bank of Australia raised interest rates by 25 basis points.

Forexlive notes forecasts call for headline CPI of 4.0% year over year, up from 3.5%, with the trimmed mean gauge seen steady at 3.6% year over year.

The report also has a monthly CPI forecast of 0.4%, compared with 1.0% expected previously, and trimmed mean monthly inflation of 0.3%.

According to Forexlive, the Australian dollar is the most direct read-through, with a print at or above forecast potentially strengthening expectations for further tightening, while a softer result, especially in trimmed mean, could raise doubts about how far the RBA needs to go.

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