The 1.3 percent quarter-on-quarter increase in Australia’s CPI index in 4Q21 raised the inflation rate to 3.5 percent YoY, higher than the modest increase to 3.2 percent predicted by the consensus.
However, even at 3.5 percent, Australia’s inflation rate is significantly lower than that of the United States or Europe. As a result, despite the market’s aggressive expectations for the cash rate, the aggressive rate rises that are being priced in for the US, and even market chatter about ECB raises, the aggressive rate hikes that are being priced in for Australia are not so clear.
In addition to the headline increase, the trimmed mean inflation rate increased in the fourth quarter, rising to 2.6 percent YoY from 2.1 percent in the previous quarter, and the weighted median inflation rate increased to 2.7 percent from 2.2 percent earlier. However, variables such as energy price surges appear to be doing a lot of the heavy lifting for inflation right now, with the transportation component topping the list of QoQ contributors. However, the impact of service components such as recreation to quarterly inflation should be monitored.
What is the current inflation rate in Australia for 2021?
According to the latest figures from the Australian Bureau of Statistics, the Consumer Price Index (CPI) climbed 1.3 percent in the December 2021 quarter and 3.5 percent annually (ABS).
What is the current rate of inflation in 2021?
The United States’ annual inflation rate has risen from 3.2 percent in 2011 to 4.7 percent in 2021. This suggests that the dollar’s purchasing power has deteriorated in recent years.
What is the inflation rate in Australia in 2022?
Australians predicted 4.9 percent annual inflation for the next two years in January 2022, up 0.1 percent points from December 2021. Inflation Expectations in January matched the seven-year high set in November 2021 the highest level since November 2014.
What is the Consumer Price Index (CPI) for September 2021?
In September 2021, the UK’s inflation rate, as measured by the CPI, was 3.1 percent. The following are the inflation measures for the year ending September 2021: In September 2021 (Index: 112.4), CPIH inflation was 2.9 percent, down from 3.0 percent in August 2021.
What was the CPI from December 2021 to December 2022?
This quarter, the Consumer Price Index (CPI) increased by 1.3 percent. The CPI increased by 3.5 percent in the year leading up to the December 2021 quarter.
What is a high rate of inflation?
Inflation is typically thought to be damaging to an economy when it is too high, and it is also thought to be negative when it is too low. Many economists advocate for a low to moderate inflation rate of roughly 2% per year as a middle ground.
In general, rising inflation is bad for savers since it reduces the purchase value of their money. Borrowers, on the other hand, may gain since the inflation-adjusted value of their outstanding debts decreases with time.
What will be the rate of inflation in 2022?
According to a Bloomberg survey of experts, the average annual CPI is expected to grow 5.1 percent in 2022, up from 4.7 percent last year.
What is the projected rate of inflation over the next five years?
CPI inflation in the United States is predicted to be about 2.3 percent in the long run, up to 2024. The balance between aggregate supply and aggregate demand in the economy determines the inflation rate.
What is a reasonable rate of inflation?
The Federal Reserve has not set a formal inflation target, but policymakers generally believe that a rate of around 2% or slightly less is acceptable.
Participants in the Federal Open Market Committee (FOMC), which includes members of the Board of Governors and presidents of Federal Reserve Banks, make projections for how prices of goods and services purchased by individuals (known as personal consumption expenditures, or PCE) will change over time four times a year. The FOMC’s longer-run inflation projection is the rate of inflation that it considers is most consistent with long-term price stability. The FOMC can then use monetary policy to help keep inflation at a reasonable level, one that is neither too high nor too low. If inflation is too low, the economy may be at risk of deflation, which indicates that prices and possibly wages are declining on averagea phenomena linked with extremely weak economic conditions. If the economy declines, having at least a minor degree of inflation makes it less likely that the economy will suffer from severe deflation.
The longer-run PCE inflation predictions of FOMC panelists ranged from 1.5 percent to 2.0 percent as of June 22, 2011.