Breaking: Aussie CPI comes in hotter and lifts AUD over 26 pips off the bat

Australia’s fourth-quarter Consumer Price Index has been published as follows:

Australia Core Inflation 2.6% YoY vs the expected 2.4%.

• CPI (YoY) Q4: 3.5% (est 3.2%, prev 3.0%).
• CPI Trimmed Mean (QoQ) Q4: 1.0% (est 0.7%, prev 0.7%).

In terms of key drivers, dwelling purchase prices, auto fuel and food will have played an important role in this release, analysts at Westpac explained in a note ahead of the event.

More to come...

About Consumer Price Index (CPI)

It is published by the Australian Bureau of Statistics (ABS) has a significant impact on the market and the AUD valuation. The gauge is closely watched by the Reserve Bank of Australia (RBA), in order to achieve its inflation mandate, which has major monetary policy implications. Rising consumer prices tend to be AUD bullish, as the RBA could hike interest rates to maintain its inflation target. The data is released nearly 25 days after the quarter ends.