The Australian Bureau of Statistics (ABS) confirmed headline inflation rising by 2.1% from a yr in the past in October, unchanged from September’s studying and slower than August’s 2.7% enhance. Analysts had anticipated worth will increase to speed up to 2.8%.

Excluding unstable objects and vacation journey, shopper costs rose by 2.4% in October, down from 2.7% in September.

Hyperlink to ABS October CPI Report

In the meantime, the Reserve Financial institution of Australia’s (RBA) trimmed imply inflation – an alternate measure of underlying inflation – got here in at 3.5% in October, up from 3.2% in September.

Particulars additionally revealed that:

• Meals and non-alcoholic drinks (+3.3%), Vacation journey and lodging (+8.0%), and Alcohol and tobacco (+6.0%) noticed essentially the most vital beneficial properties
• Transport (-2.8%) and Electrical energy (-35.6%) helped offset general costs, with gas costs falling 11.5% yearly
• Housing prices elevated barely, with Rents up 6.7% year-over-year amid tight rental markets

The report underscores that inflation stays above RBA’s 2% – 3% goal band however is steadily moderating, retaining the central financial institution’s present coverage stance in focus as merchants look forward to the following RBA assembly.

Australian greenback vs. Main Currencies: 5-min

Overlay of AUD vs. Main Currencies Chart by TradingView

The Australian greenback, which had been giving up a few of its U.S. session beneficial properties, edged decrease forward of the discharge and swung even decrease when the annual CPI report got here out.

However whereas the comdoll initially dipped on the broadly cooler inflation studying, it additionally shortly recovered losses as merchants thought of that the report is unlikely to vary the RBA’s view that inflation “stays too excessive.”

The post-report upswing lasted for about an hour earlier than Reserve Financial institution of New Zealand’s (RBNZ) not-so-dovish coverage determination caught shopping for consideration whereas fears over Trump’s potential tariffs weighed on general danger sentiment.

On the time of writing, the Aussie was buying and selling blended towards its counterparts, displaying weak spot significantly towards NZD and JPY however blended worth motion towards another currencies.