Australia’s inflation nightmare – Australia’s inflation rate is the highest globally

Analysts at a top Australian investment banking firm, Barrenjoey Capital Partners, point out that Australia’s recent inflation performance is just about the worst on the planet:

“Using the trimmed mean is preferable – Australia’s six month annualised rate of trimmed mean inflation of 3.6% is the highest inflation globally (higher even than the US at 3.2% 6mAR trimmed).”

Data info is here from Wednesday’s release:

Australian Q1 CPI +1.0% q/q (expected 0.8%) 3.6% y/y (expected 3.4%)

Westpac’s take:

Australia- inflation a bit higher than expected, RBA on hold

This take is spot on:

4 reasons why the RBA may be the last major central bank to cut rates

he stunning higher than expected across-the-board inflation readings are reverberating through markets.

Via Commonwealth Bank of Australia:

yield on the three‑year Australian government bond jumped by 13bp to 4.03%Interest rate markets are now pricing only a small chance of a sole 25bp rate cut by the end of the year

TD say to forget about a Reserve Bank of Australia rate cut in 2024 due to:

strong employment market

ongoing high migration into Australia

rising energy prices

And conclude:

“The RBA is likely to adopt a more hawkish stance, but one that it’s loath to act upon,” expect the first cut now in February 2025


From the front page of the RBA website. The RBA target band for inflation is 23 to 3%. Not rhere yet.

This article was written by Eamonn Sheridan at