Monthly CPI

The ABS's new monthly CPI indicator is out today, covering June, July, and August 2022.

Headline CPI:
🦉 in June rose 6.8% YoY
🦉 in July rose 7.0% YoY
🦉 in August rose 6.8% YoY

Excluding volatile items CPI:
🦉 in June rose 5.5% YoY
🦉 in July rose 6.1% YoY
🦉 in August rose 6.2% YoY

The main contributor to the easing of headline inflation from July to August was a significant fall in fuel prices. This is reflected in the CPI figures excluding volatile items, where inflation continued to rise.

While these figures aren't a robust as the quarterly figures that the ABS puts out, and it might take some time to get a fix on their accuracy and impact, they do paint a picture of core inflation that is becoming more entrenched.

This should provide more than enough support for the RBA to increase rates another 50bp next week.

Link to the data: https://www.abs.gov.au/media-centre/media-statements/monthly-cpi-indicator-rose-68-year-august