Australian headline inflation likely to have accelerated in Q3 on sharp rises in electricity, gas prices

The Australian headline inflation figure for the third quarter is expected to be dominated by the effect of the sharp rises in residential electricity and gas prices that came into effect via most of the country on 1 July.

According to an ANZ research report, the nationwide rise was 10 percent quarter-on-quarter for electricity and 5 percent for gas in the third quarter. The headline CPI figure is expected to have risen 0.8 percent quarter-on-quarter and 1.9 percent year-on-year, stated ANZ.

Meanwhile, the rise in core prices are expected to be more subdued. The average of the core measures are likely to have risen 0.4 percent quarter-on-quarter and 1.9 percent year-on-year. There seems to be some residual seasonality in the trimmed mean measure, with a step-down in the third quarter readings in the each of the last three years, added ANZ.

At 16:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was neutral at -45.0144, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 150.115. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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