By forex calendar in MI Inflation Gauge m/m —

AUD MI Inflation Gauge m/m, Oct 07, 2024

Australia's MI Inflation Gauge Remains Low in October 2024

The Melbourne Institute (MI) Inflation Gauge for October 2024, released on October 7th, revealed a month-on-month increase of 0.1%, indicating a low impact on the Australian Dollar (AUD). This figure follows a -0.1% decline in September, suggesting a slight uptick in inflationary pressures.

Understanding the MI Inflation Gauge:

The MI Inflation Gauge is a monthly indicator designed to track consumer price changes in Australia. It aims to mimic the quarterly Consumer Price Index (CPI) data released by the Australian Bureau of Statistics. The gauge provides an early glimpse into inflationary trends and can be used to anticipate potential shifts in monetary policy.

Key Takeaways from the October 2024 Release:

  • Minimal Inflation: The 0.1% increase in the MI Inflation Gauge signifies a low level of inflation in October. This suggests that price pressures remain relatively subdued, which could be positive news for consumers.
  • Slight Improvement: The positive reading follows a negative reading in September, indicating a slight improvement in inflation trends. However, it is too early to conclude that this marks a sustained upward trend.
  • Potential for Monetary Policy Influence: The MI Inflation Gauge serves as a useful data point for the Reserve Bank of Australia (RBA) in gauging inflationary pressures. While the current reading suggests minimal inflation, any significant future fluctuations could impact the RBA's decision-making process regarding interest rate adjustments.

Impact on the Australian Dollar:

Typically, a higher-than-expected inflation reading tends to boost the AUD, as it indicates a strong domestic economy. However, the current reading of 0.1% falls within the expected range and is considered a low impact figure. This suggests that the release is unlikely to have a significant impact on the AUD in the short term.

Further Considerations:

It's important to note that the MI Inflation Gauge is a preliminary indicator, and its full impact on the AUD and broader economy will depend on a variety of factors, including future inflation readings, global economic trends, and the RBA's monetary policy stance.

Next Release and Future Outlook:

The next release of the MI Inflation Gauge is scheduled for November 3, 2024. Closely watching future readings will be crucial for understanding the trajectory of Australian inflation and its potential impact on the AUD.

Key Information at a Glance:

  • Data Source: Melbourne Institute
  • Release Frequency: Monthly, typically the first Monday after the month ends.
  • Data Type: Change in the price of goods and services purchased by consumers.
  • Relevance: Provides an early glimpse into consumer inflation trends.
  • Impact on AUD: Typically, a higher-than-expected inflation reading is positive for the AUD. However, the current reading is considered a low impact figure.

Note: Full reports on the MI Inflation Gauge are only available to Melbourne Institute subscribers.

Disclaimer: This article is intended for informational purposes only and should not be considered investment advice.