Australia: CPI inflation likely to rise 0.6% in Q1 2018 - Nomura

Analysts at Nomura are forecasting a 0.6% q-o-q rise in Australia’s headline CPI inflation in Q1 2018, which would see year-end inflation rise to 2.1% y-o-y from 1.9%.

Key Quotes

“We expect headline CPI inflation to be pushed up by higher tobacco and electricity prices, a 1% rise in fuel prices, and seasonal rises in health and education costs. Core inflation should be relatively more contained, and should provide evidence of subdued retail price pressures – we forecast the trimmed-mean measure to rise by 0.48% q-o-q and by 1.8% y-o-y.”