Today at 11.30am the
Australian Bureau of Statistics released its estimate of consumer prices
for the September quarter. As a teaser, Barry Hughes earlier suggested for the
AFR: “Omens not good for the CPI”.

In fact, however, the outcome today
represents mild good news for the economy. “Headline” inflation was .9 % for the
quarter and “only” 3 % for the year – both measures slightly below the average
expectation. “Core” inflation – omitting petrol and food prices – was bang on
expectations at .6 % for the quarter and 2.0 % for the year. Fixed interest
markets rallied slightly.

US inflation has
surprised on the upside. Australia’s Producer Price Index
(PPI), published Monday, ditto. The Melbourne Institute-TD Securities monthly
measure of inflation includes a reading for September compared with a year ago
of 3.4%, above the Reserve Bank’s target range. Reports from Henry’s
on the state of the Australian economy include several comments about
the squeeze of rising prices – consumer prices for households, costs for

Read more on the Henry
Thornton website here.

Get Crikey for $1 a week.

Lockdowns are over and BBQs are back! At last, we get to talk to people in real life. But conversation topics outside COVID are so thin on the ground.

Join Crikey and we’ll give you something to talk about. Get your first 12 weeks for $12 to get stories, analysis and BBQ stoppers you won’t see anywhere else.

Peter Fray
Peter Fray
Editor-in-chief of Crikey
12 weeks for just $12.