MNI BRIEF: Aussie Q4 Trimmed CPI At 0.5% Q/Q

Australian trimmed mean inflation printed at 0.5% q/q over Q4, 10 basis points lower than expected, and down from Q3’s 0.8%, data from the Australian Bureau of Statistics showed. 

The measure was 3.2% on a year-ended basis, down 30bp over Q3. Headline inflation was 2.4% y/y. 

The Reserve Bank of Australia prefers trimmed mean inflation and had expected it to print at 3.4% y/y over Q4. 

The result will add pressure on the Board to lower the 4.35% cash rate when it meet over Feb 17-18, however, a resilient labour market could still lead the RBA to pause. (See MNI INTERVIEW: Market Overestimating RBA Feb Rate Cut Chance)