Australia’s May CPI will be released on Wednesday, 25 June.
This release can be used in conjunction with the April CPI to nowcast a very good estimate of the Q2 CPI, including on an underlying basis. The RBA’s May SMP had pencilled in a trimmed mean inflation forecast of a little more than +0.6% q/q for Q2.
About 68% of the CPI basket by weight is price updated in May, with several services categories measured in the mid-month of the quarter. Notably, domestic market services categories with a combined CPI weight of ~14% are updated in May (compared with ~2% in April).
We expect year-ended headline inflation to have remained at +2.4% y/y in May.
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