Economic calendar in Asia – Australian monthly inflation data

<p>The monthly inflation data from Australia features prominently on the Reserve Bank of Australia website:</p><p>The update today is for May monthly <a href="https://www.forexlive.com/terms/i/inflation/">inflation</a>, due at 11.30 am Sydney time</p><ul><li>0130 GMT and 9.30 pm US Eastern time </li><li>expected 6.1%, prior 6.8%</li></ul><p>The monthly CPI indicator provides a timelier indication of inflation using the same data collected for use in the quarterly CPI. Do note though that the monthly reading includes updated prices for between 62 and 73 per cent of the weight of the quarterly CPI basket, its not the full picture. Nevertheless, as you can see, the RBA pays it attention. </p><p>The drop that is expected will be welcomed by the RBA, but its still way above the top of the 2 – 3% target band. </p><p>I am not at all sure that an improved (ie lower) CPU reading will keep the Reserve Bank of Australia from another hike next week (their meeting is July 4). Reserve Bank of Australia Deputy Governor Bullock spoke last week, and she was hawkish indeed:</p><ul><li><a href="https://www.forexlive.com/centralbank/rba-dep-gov-bullock-says-employment-and-economy-need-top-grow-below-trend-for-a-while-20230620/" target="_blank" rel="follow">RBA Dep Gov Bullock says employment and economy need to grow below trend for a while</a></li><li><a href="https://www.forexlive.com/centralbank/rba-dep-gov-bullock-says-higher-rates-are-the-only-tool-the-rba-has-to-curb-inflation-20230620/" target="_blank" rel="follow">RBA Dep Gov Bullock says higher rates are the only tool the RBA has to curb inflation</a></li></ul><p>—</p><p>Apart from the Aussie CPI data the calendar during the session is empty. Eyes will be on the PBOC CNY reference rate at around 0115 GMT though. </p>

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