Inflation moving in the right direction
The Q4 Australian CPI report negatively surprised. A welcomed development for indebted mortgage holders with the data further cementing the case for the RBA to keep rates steady for a while, and opening the door slightly more to the start of a gradual easing cycle later this year. Positive base-effects in things like food and petrol as last year’s larger increases rolled out of calculations, coupled with disinflation across ‘goods’ prices (thanks to weaker global demand and repaired supply chains), and government subsidies designed to artificially hold back rents and take the heat out of electricity costs pushed annual CPI...