MNI BRIEF: Aussie Trimmed Mean Rises In Q4

Australia’s Q4 trimmed mean inflation rose 0.9% q/q, taking the annual pace to 3.4% y/y, while headline inflation rose 1.0% m/m in December, Australian Bureau of Statistics data showed Wednesday.

The trimmed mean, the Reserve Bank of Australia’s preferred gauge of underlying inflation, eased 10bp from Q3 but was 40bp higher on a year-ended basis.

Housing was the largest contributor to annual inflation in December, rising 5.5%, followed by food and non-alcoholic beverages at 3.4% and recreation and culture at 4.4%.

The firmer-than-expected trimmed mean outcome will add to pressure on the RBA to hike the 3.6% cash rate at next week’s meeting. (See MNI INTERVIEW: Trimmed Mean Key To Feb RBA Hike)