• RBA estimates CPI reweighting means underlying inflation overstated by 0.3 ppt

Market news

10 November 2017

RBA estimates CPI reweighting means underlying inflation overstated by 0.3 ppt

  • Entry of foreign retailers to constrain retail inflation

  • Forecasts cpi inflation at 2 pct to june2018, then 2.25 pct to dec 2019

  • Unemployment rate at 5.5 pct out to june 2019, 5.25 pct by dec 2019

  • Household consumption likely slowed in q3, constrained by slow income growth and high debt

  • Further rise in AUD would slow pick up in economic growth, inflation

  • Revises up outlook for jobs growth, leading indicators point to solid growth over next 6 months

  • Housing market has eased nationally, Sydney has slowed noticeably

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