Australian CPI data due today, preview – RBA will be comforted, no rate hike next week

<p>ANZ's preview of the data due today and the implications for the Reserve Bank of Australia policy meeting on August 1:</p><ul><li>We expect both headline (+6.2% YoY) and trimmed mean inflation (+5.9% YoY) to have moderated in Q2. </li><li>The RBA will likely take comfort that inflation appears to be falling in line with, or a touch faster than, its May forecasts. The RBA forecast Q2 headline inflation of 6.3% YoY and trimmed mean of 6.0%, each 0.1ppt above our forecast. </li><li>While the August meeting is live, an inflation outcome around our forecast would support our expectation that, on balance, an extended pause from the RBA is now most likely (including no move in August).</li></ul><p>Earlier previews take an opposite view of the RBA meeting next week:</p><ul><li><a href="https://www.forexlive.com/centralbank/australian-cpi-data-due-today-preview-expect-another-rba-rate-hike-next-week-20230725/" target="_self" rel="follow">Australian CPI data due today, preview – expect another RBA rate hike next week</a></li><li><a href="https://www.forexlive.com/centralbank/australian-cpi-data-due-today-preview-big-undershoot-needed-to-stop-the-rba-from-hiking-20230725/" target="_self" rel="follow">Australian CPI data due today, preview – big undershoot needed to stop the RBA from hiking</a></li></ul><p>Levels in play:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.