I took a look at the Consumer Price Index figures for Q3 2016 in some detail here, which showed that core inflation is actually tracking well below the target 2 to 3 per cent range.
Rates on hold
Apart from the Monetary Policy Decision for November on Tuesday afternoon, where I expect the RBA will sit pat, there will be some other interesting news and data this week.
Building approvals are forever unpredictable from month to month, and have defied predictions of a significant slowdown to date. These data will be watched closely, particular the figures for apartment approvals.
The figures for International Trade have been consistently recording deficits over the past couple of years. However, as exploding coal spot prices gradually begin to be reflected in higher export prices, it looks feasible that by early 2017 the monthly deficits could be all but erased, at least until China fires up its production volumes again.