Headline CPI came below economists’ forecasts but still made into the RBA’s 2-3% target range for the first time in over a year.
Headline CPI rose 2.1% y/y in Q2, up from 1.9% in Q1 but just below estimates of a 2.2% increase.
Trimmed mean CPI, the RBA’s preferred measure, rose 1.9% y/y, matching estimates.
The last time annual trimmed mean CPI was within the target range was in the last quarter of 2015.
Prices appear well anchored and the market gives a less than 50% chance RBA will raise its base rate in the next 12 months.