📝We Have Revised Up Our Australia Q3 CPI Forecast to 1.1%Q/q: Westpac

We have revised up our Q3 CPI forecast to 1.1%qtr/5.3%yr and lifted our Trimmed Mean forecast to 1.1%qtr/5.0%yr.

While still consistent with an ongoing moderation in inflation, our estimate for the six month annualised pace for the September CPI has lifted to 4.0%yr from 3.7%yr. The Trimmed Mean six month annualised pace lifted to 4.0%yr from 3.5%yr. Looking further out to end 2023 with the upward revision to the September quarter, and incorporating higher crude oil prices and a lower AUD than expected, we are now forecasting the CPI to be 4.3%yr at end 2023 (was 3.9%yr) and the Trimmed Mean at 4.1%yr (was 3.8%yr).

- Westpac