Chinese inflation sidelined

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China’s annual inflation rate fell from 3 per cent to 2.2 per cent in June – a 29-month low. The June result was marginally better than forecasts centred on a result near 2.3 per cent. What does it all mean? The latest inflation data confirms that China’s policymakers can put inflation concerns to rest and

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Rate cut all but certain after weak inflation data

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The Consumer Price Index – the main measure of inflation in Australia – rose by 0.1 per cent in the March quarter, well below expectations centred on a 0.6 per cent rise in prices. In seasonally adjusted terms the CPI fell by 0.2 per cent. The CPI stands just 1.6 per cent higher than a

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Lowest inflation reading in 3 years

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The Consumer Price Index – the main measure of inflation in Australia – was unchanged in the December quarter. It was the lowest quarterly inflation reading for three years. In seasonally adjusted terms the CPI rose by 0.2 per cent – in line with economist forecasts. The CPI stands 3.0 per cent higher than a

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Benign September quarter inflation clears the way for a rate cut next week

Headline September quarter inflation came in right as expected at 0.6% in the quarter or 3.5% year on year. However, the key is that the underlying measures came in at just 0.3% ini the quarter, which was half market expectations for a 0.6% gain and also below our expectation for a 0.5% rise. What’s more

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China: Inflaton dragon tamed?

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The latest inflation data out of China has certainly been encouraging. Inflation has topped out and is now tracking lower. And more importantly inflation has the potential to moderate even further, as the measures put in place by Chinese authorities over the last few months to cap food prices and slow growth have the desired

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Inflation surprise: rates now in focus

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The main measure of inflation in Australia – the Consumer Price Index (CPI) rose by 0.9 per cent in the June quarter, above economist expectations focussed on an increase of 0.7 per cent. The annual rate of inflation rose from 3.3 per cent to 3.6 per cent. Higher prices for fruit, petrol, medical costs, furniture,

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New Carbon Tax: More or less certainty?

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Details on proposed Carbon Tax The Federal Government has proposed a new tax on carbon emissions of $23 a tonne to apply to 500 of the biggest corporate emitters from July 2012. The aim of the tax is to increase the price of goods produced by carbon-intensive industries and thus change behaviour of consumers and

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Investor Signposts: Week Beginning July 10 2011

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The big picture Confused about where the economy is heading? You’re in good company, with the boffins from the Reserve Bank also seemingly scratching their collective heads about where things are going. Earlier in the year the policymakers appeared confident that the economy would rebound strongly after the floods and cyclones and flagged the risk

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RBA confirms that it is ‘wait and see’ mode

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In a speech by RBA Assistant Governor (Economic) Philip Lowe entitled “Inflation: The Recent Past and the Future”, Mr Lowe has reiterated that the RBA believes underlying inflation will lift only slowly, and over a matter of years rather than months. Philip Lowe didn’t flag any near-term implications for rates, noting: “While conditions are very

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East or West – Where to Invest?

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The two biggest economies in the world could hardly look more different at the moment. One is doing all it can to stimulate growth, while the other is trying to rein it in. In the US, the Obama administration is ploughing a lonely furrow, the only major country in the world to be easing fiscal

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