Australia Q4 CPI: Increase in headline was driven by alcohol, tobacco – Goldman Sachs

Analysts at Goldman Sachs offer their afterthoughts on the Australian Q4 CPI report, after the RBA's trimmed mean CPI matched expectations.

Key Quotes:

“The trimmed mean is the most closely watched.

The weighted median is the other 'core' rate measure. Both have come in unchanged from Q3.

Overall in-line with expectations with underlying stagnating just below the target band. 

Increase in headline was driven by alcohol, tobacco but in-line with our expectations.

Other main contributors were recreation and culture owing to higher prices for domestic holiday travel.

Oil prices weighed on headline.

Rents were soft/dragging vs. our expectations.”