Australia's consumer price index (CPI) for June is forecast to rise 0.4% on a monthly basis, raising the annual pace to 4.2% from 4% in May, Westpac Banking said in a Friday report.
On a seasonally adjusted basis, it expects a 0.2% increase on a monthly basis.
The increase on a monthly basis is expected to be driven by recreation and culture as well as housing, reflecting higher holiday travel, rents, and new dwelling purchase costs. This is expected to be partly offset by a sharp decline in automotive fuel prices.
Survey measures pointed to a moderation in cost pressures, with quarter-on-quarter purchase and output price growth slowing to 2% and 0.6%, respectively. Consumers' year-ahead inflation expectations also inched lower and reached around pre-conflict levels, though they remain elevated at 4.7%.
Monthly trimmed mean inflation is forecast to clock in at 0.4%, taking the annual rate to 3.7% from 3.6% in May. The quarterly trimmed mean is expected to rise 0.9%, bringing the annual rate to 3.7%.
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