Australian Q4 Inflation Data Expected to Deteriorate Significantly, NAB Forecasts Two Rate Hikes

Deep News01-22 15:30

A senior economist at National Australia Bank, Taylor Nugent, indicated that the upcoming fourth-quarter inflation data, due at the end of the month, could be exceptionally severe. He projects that the quarterly trimmed mean core inflation rate will reach 0.9% (quarter-on-quarter) and 3.3% (year-on-year), exceeding the Reserve Bank of Australia's forecasts of 0.75% and 3.2%, respectively.

Nugent pointed out that housing costs, services inflation—particularly the seasonal surge in travel prices—and new vehicle registration fees are the primary drivers pushing inflation higher. National Australia Bank predicts that the RBA may implement two 25-basis-point interest rate hikes, one in February and another in May.

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