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🇦🇺Cable FX Macro Weekly Note: Australia Q4 CPI

**As seen in Risk In The Week report 01/20/23,

Australian Q3 inflation figures came in at 7.3% Y/y and 1.8% Q/q, the former was faster than the previous while the latter printed unchanged from the prior. The ABS noted some adjustments to the calculation of rent prices as the new monthly figure series is incorporated by the bureau. On a quarterly basis, housing and food expanded by the most at 3.2%. The only declines were seen in clothing and transport prices. We recently received the November consumer prices report, which showed inflation rebounding to 7.3% Y/y from 6.9%. The ABS noted that the biggest contributor to the annual rise was meals out and take away food, prices jumped 7.3% due to resizing input costs, labor shortages and fresh food supply issues. The November report on inflation drove expectations of RBA tightening higher, as prices have not peaked. Analysts at Westpac see inflation coming at 1.5% Q/q and 7.4% Y/y, they note this would be the peak in the current cycle. Westpac attributes the slowdown due to a moderation in food, new dwellings, clothing and services prices.



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