Inflation this week...a short preview

Inflation figures due

Inflation in Australia peaked later than in some other countries, partly due to border closures and a slow reopening, and so it's taken longer for the rate of inflation to get back to target.

Over the year to September 2024, headline inflation was 2.8 per cent, helped lower by subsidies for energy and rent assistance.

The trimmed mean inflation figure, which strips out some of the noise, was 3½ per cent. 

Source: ABS

On Wednesday morning, the ABS will release the quarterly inflation figures for December 2024.

Rents have levelled off now, and the housing component overall is likely to be negative.

While there's expected to be the usual contribution from alcohol and tobacco taxes, it's not exactly clear to me where else inflation is going to come from this quarter. 

Insurance and airfares, maybe.

The median market forecast from economists is for quarterly headline inflation of just 0.4 per cent, which would take the annual figure down to around just 2.6 per cent. 

Again,  some of this softness will be down to energy rebates and rent assistance.

The trimmed mean inflation figure is expected to be 0.6 per cent, but there's some potential for downside risk year, and a figure that rounds down to 0.5 per cent.

Although the annual figure would be about 3.3 per cent for trimmed mean, there has been a notable deceleration in the inflationary pulse, and the 6-month annualised pace would be well within the target range. 

Of course, these figures are being so closely watched, because a soft result would clear the path for interest rates to fall in 2025 (or a hot print, would keep interest rates higher for longer). 

The figures are due for release at 1130 AEST on Wednesday.

---

P.S. Whenever you’re ready…here are 5 ways I can help you manage your own money and go next level wealth:

1. Boom or Bust – 20 minute online workshop for investors

Register for my next free online training - Boom or Bust? How to change your investment plan - book in here

You also download a free copy of my e-book The Only 6 Ways to Become Wealthy here.

    2. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property investment purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    3. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    4. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,800 followers. 

By the way, I'm an 8-times published author on finance and investing, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

5. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today.