MNI BRIEF: Aussie Oct CPI At 3.8%, Trimmed 3.3%

Headline inflation rose 3.8% y/y in October, 20bp above expectations, while trimmed mean inflation increased by 30bp more than anticipated to 3.3% y/y, according to the first release of the complete Monthly Consumer Price Index by the Australian Bureau of Statistics.

Housing remained the largest contributor to annual inflation, rising 5.9%. This was followed by food and non-alcoholic beverages, and recreation, and culture, both up 3.2%.

The Reserve Bank of Australia is expected to look through the new monthly release and continue to rely primarily on quarterly data while the ABS continues developing the monthly series. (See MNI RBA WATCH: Bullock Strikes Cautious Tone Following Pause) The Bank expects trimmed mean inflation, its preferred measure, to reach 3.2% by December.