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Australia’s ABS will start publishing a complete monthly inflation index on 26 November, beginning with October data. More details will come on Wednesday, as the central bank faces added pressure from rising unemployment. The change aligns Australia with other advanced economies. As per Bloomberg, until now, it has only released a partial monthly CPI based on a small set of items, an approach that often needed revisions and overlooked deeper price trends. Reserve Bank Governor Michele Bullock has long pointed to the lack of up‑to‑date inflation data as a hindrance to policy. Earlier this month, she said the current monthly gauge is “a little too volatile and not quite representative of what’s really going on with inflation.” Trimmed‑mean inflation was close to the top of the RBA’s 2–3 % range in Q1. Despite softer April and May prints, Bullock said the board will wait for the full quarter’s data before considering another rate move. The RBA has already cut rates twice this year, in February and again in May. A third cut is likely in August if the July  30 Q2 inflation report shows prices easing. Unexpected rise in unemployment adds pressure on RBA The Wall Street Journal reported earlier that the central bank now confronts an unexpected twist in the labour market. Data released Thursday showed the jobless rate climbed to 4.3 % in June, after two straight months of weak hiring. That rise ended a roughly six‑month stretch at 4.1%. Full-time jobs declined. Yet, the RBA opted to hold rates steady despite sluggish economic growth and inflation back within acceptable bounds. Traders and economists, nearly fully priced in for a cut, voiced frustration at the surprise hold. By pausing until the end‑of‑month inflation report, the RBA has thus far avoided a clear policy misstep. But with unemployment now ticking up, the risk of error grows…

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Filed under: News - @ July 21, 2025 6:31 pm