Eyes on Aussie CPI

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Meanwhile and domestically, Australia's February Consumer Price Index print will grab attention after the Reserve Bank of Australia flagged it as a key data point for its April monetary policy decision, as analysts at TD Securities explained.


´´We expect CPI inflation to ease further to 7% YoY in February (cons: 7.2%) from 7.4% last month and further affirm the RBA's view that inflation likely peaked in Q4 last year. Our below consensus forecast is due to the large seasonal decline from recreational services (e.g., travel prices), partly offset by firm price increases for education and transport. We still retain a 25bps hike forecast for the April meeting as inflation is still far above the RBA's inflation target and central banks such as ECB and Fed have pushed through with hikes despite recent financial volatility

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