CPI key focus, markets toy with rate rise

Asia's Tech News Daily

CPI key focus, markets toy with rate rise

The Reserve Bank of Australia is adamant the nation is not facing the same sort of inflation pressures being seen in other parts of the world and which has prompted some central banks to start lifting interest rates.

But Australian financial markets are not convinced the RBA's sanguine view will hold and are pricing in the risk of rising rates as early as next year, much earlier than the central bank is predicting.

Market interest rates were particularly jolted by the unexpectedly sharp rise in New Zealand's annual inflation rate reported last week, which has reached almost five per cent and the highest since 2011.

The Australian Bureau of Statistics will release the consumer price index for the September quarter on Wednesday.

Economists' forecasts point to a 0.8 per cent rise in the quarter, driven by rising prices for fuel, food, household furnishings and alcohol and tobacco.

Petrol prices hit a 13-year high last week.

However there is some uncertainty whether there will be any lingering impact from the federal government's now expired HomeBuilder grants program.

While the annual rate is forecast to ease to 3.1 per cent from 3.8 per cent as of the June quarter, it would still remain at the top end of the RBA's two to three per cent inflation target.

In the June quarter, the annual rate of CPI spiked to its highest level in some 13 years as a result of rising fuel prices and the unwinding of government support introduced during the depths of last year's recession.

But underlying inflation – which smooths out excessive price swings and is more linked to interest rate decisions made by the RBA – is likely to remain subdued.

Predictions centre on underlying inflation rising 0.5 per cent in the September quarter to 1.9 per cent annually.

“The market may be expecting an upside surprise … especially on the back of the NZ CPI,” Deutsche Bank strategist Tim Baker says.

“But Australia doesn't count used cars, has government policy weighing on housing costs and won't have an odd international airfare contribution.”

These were the big drivers of NZ's inflation result.

The RBA's most recent forecasts see both annual CPI and underlying inflation returning to 1.5 per cent by mid-2022.

The central bank has persistently said it will not lift the cash rate until inflation is sustainably within the two to three per cent inflation target, a condition it does not expect to be met before 2024.

Deputy governor Guy Debelle will be able to provide his thoughts on the inflation result and interest rate outlook when he faces a Senate estimates with assistant governor Michele Bullock on Thursday.

Meanwhile, Australian shares look set for a positive start to the week, despite a mixed finished on Wall Street on Friday where losses for several large technology stocks weighed on the market.

However the Dow Jones Industrial Average just did enough to eclipse its previous record high set on August 16, gaining 73.94 points or 0.2 per cent to 35,677.02.

The S&P 500 slipped 4.88 points, or 0.1 per cent, to 4,544.90, while the Nasdaq slid 125.50 points, or 0.8 per cent, to 15,090.20.

Australian share futures were 30 points, or 0.4 per cent, higher at 7416.

On Friday, the Australian benchmark S&P/ASX200 index closed higher by 0.1 points, or zero per cent, to 7415.5.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Debutant Roy Kuijpers shoots RKC past NEC in the very last second Dutch football

RKC won in the very last second of NEC: 2-1. The entertaining match remained in balance for a long time, until Eredivisie debutant Roy Kuijpers scored the decisive goal in ... Read more »

Australia holds steady in Asia Power Index

Australia is trending down in military capability after joining the new AUKUS defence pact but has overall held steady to maintain sixth spot in the Asia Power Index. The Lowy ... Read more »

Costa Georgiadis and Wendy Harmer lead the celebrity tributes for Gardening Australia host Peter Cundall after his death at age 94

Celebrity tributes have poured in after news that Australian gardening expert Peter Cundall had died, aged 94. Peter, who hosted ABC television show Gardening Australia for 18 years, passed away ... Read more »

Long-time Gardening Australia host Peter Cundall has died from a short illness at age 94

Australian gardening expert Peter Cundall has died aged 94. Peter, who hosted ABC television show Gardening Australia for 18 years, passed away after a short illness and was surrounded by ... Read more »

Full fuel pump spill closes Qld highway

A full fuel pump at a service station has burst, spilling thousands of litres of petrol and shutting down a highway west of Brisbane. Police set up a 500m exclusion ... Read more »

Man's body found off Sunshine Coast

The body of a 20-year-old man who went missing while swimming off the Sunshine Coast has been found. Rescue crews had resumed their search for the man identified in media ... Read more »

Two men charged over Perth stabbing

Police investigating a fatal stabbing outside a Perth nightclub have charged two men over a second attack which happened shortly before. Homicide squad detectives say they have charged a 23-year-old ... Read more »

Man charged over Queensland child death

A Queensland man has been charged with manslaughter following the death of a three-year-old girl in the state's north. Police say emergency services were called to an address in the ... Read more »

NSW floods continue throughout the month

Flooding is expected to continue for weeks in NSW with some areas facing an anxious wait for floodwaters to arrive later in the month. Prime Minister Scott Morrison will visit ... Read more »

Floods could cut off residents for a month

Properties downstream of Goondiwindi in southwest Queensland could be cut off by floodwaters for more than month, according to the local mayor. Goondiwindi Mayor Lawrence Springborg said floodwaters peaked on ... Read more »

Treasurer to lift growth in budget review

Treasurer Josh Frydenberg says the government's forecast for economic growth next year will be stronger then predicted in the May budget when he hands down his mid-year review later this ... Read more »

Perrottet unveils rural health cash splash

An almost $100 million health services boost is headed the way of regional and rural NSW. The funding package will secure support for frontline workers and is also part of ... Read more »

Parents of school shooter Ethan Crumbley are placed on suicide watch as they weep in court after judge sets bail at $500K: Cops investigate accomplice suspected of helping them hide out in Detroit art studio

James and Jennifer Crumbley, the parents of accused Michigan school shooter Ethan, are on suicide watchSheriff says all three Crumbleys are now isolated separately under watch in an abundance of caution Parents broke down in court as their charges were read aloud Saturday morning after their capture in DetroitPolice are now investigating a suspected accomplice who helped them hide out in basement art studio Crumbleys were arrested early Saturday in Detroit near the Canadian border and now face 15 years prison Parents each pleaded not guilty to four counts of involuntary manslaughter and bail was set at $500,000 Their son, Ethan, 15, is being held without bail on charges including murder, attempted murder and terrorism Shooting at Oxford High School near Detroit killed four students and wounded seven others    Read more »

New DNA tech can predict unknown suspects

Genetic material found at crime scenes could help narrow a search for suspects even when there's no match to DNA records, using new technology to be used for the first ... Read more »

Busy auction week but many not selling

Australia's capital cities have seen one of the busiest property auction weeks on record, but the clearance rate has slipped below 70 per cent. CoreLogic figures for the first week ... Read more »

Push for more cervical cancer self-testing

Cervical cancer screenings have declined with almost half of Victorian women failing to keep up with routine appointments during the pandemic. The Cancer Council estimates about 47 per cent of ... Read more »

Time for Sydney to come out and play

If positivity and optimism could be bottled, there's a fair chance Olivia Ansell's name would be on the label. Sydney Festival's new artistic director has precisely the vision, smarts and ... Read more »

Sydney, Melbourne exodus not over yet

Australians are still deserting Melbourne and Sydney in droves and moving to Brisbane or Perth, according to an online removalist booking company. “We are a good proxy of the total ... Read more »

Poor awareness about repeat heart attacks

An estimated 57,000 Australians are admitted to hospital with heart attacks every year. Thirty per cent of them are on their second and one-in-10 will experience another event within 12 ... Read more »

Iran shows confiscated classic car collection of expelled imperial family

More than forty years after the expulsion of the imperial family from Iran, dozens of ‘toys’ belonging to the former rulers are on display in a museum. The Iran Historical ... Read more »

Ruben Nicolai ‘assaulted' at The Masked Singer and Danny Vera reacts sharply to acid tweet

ShowbytesShort updates from the stars on social media: we love it. In the Showbytes section, the show editors scour the web for the craziest, most beautiful and striking posts by ... Read more »

US growth forecast down due to Omicron

Goldman Sachs is now forecasting a 3.8% growth for the world’s largest economy this year, from a previously forecast 4.2%. A plus of 2.9% is now forecast for next year. ... Read more »

Australian cricket coach Justin Langer reveals what he REALLY thinks about Tim Paine's sexting scandal after mercy dash to see the fallen skipper who walked away from the game amid fears for his health

Justin Langer has gone in to bat for his former skipper over sexting scandal  Paine stepped down as Test captain on November 19 over the controversy  Wicketkeeper sent sexual messages and graphic photo to cricket staffer in 2017Langer slammed the relentless attacks on Paine's conduct as hypocritical Read more »

Peter Römer thinks Baantjer can return to TV

“A few years ago I would say no, but now it has been so long. And so much is being recalled from what was once a success,” Römer said on ... Read more »

Tas sailor rescued from stricken yacht

A sailor has been rescued after his 25-foot yacht was buffeted by wild weather off the west coast of Tasmania. The 76-year-old Zeehan man activated his emergency beacon late on ... Read more »

Pilot perishes in NSW light plane crash

A man has died in a light plane crash in northern NSW. The aircraft plummeted to the ground and burst into flames on a farm in Moomin Road at Rowena, ... Read more »

Man's body found in Canberra alley

Police are investigating following the discovery of a man's body in an alleyway in central Canberra. Detectives have cordoned off Garema Place near the corner of Mort Street and City ... Read more »

Snapchat engineer and his wife 'tried to save their baby who died first on remote California hiking trail before they were killed by hyperthermia and dehydration due to 100F heat, investigation finds

A British Snapchat engineer and his wife tried to save their baby daughter, who died of hyperthermia and dehydration, before they died themselves  John Gerrish, his wife, Ellen Chung, their 1-year-old daughter, Miju, and their dog were found dead on a remote hiking trail in California in AugustA survival trainer said in an email to detectives that the young couple likely died while attempting to save their infant daughter 'Sadly, I believe they were caught off guard, and once they realized their situation, they died trying to save their child and each other,' the trainer wrote The temperatures were 99-103 degrees on August 17, when they were found deadThey were found with one empty 85oz bladder for water with them, and no other water containers or filtration systemsWater nearby was confirmed to contain the naturally occurring toxin Anatoxin-A, which can be fatal to animals - but there was no evidence the family ingested it Their death had mystified police who quickly ruled out a number of causes of death including extreme heat, a lightning strike, and carbon monoxide Read more »

SA holds off Omicron border change for now

South Australian authorities are “extraordinarily concerned” about the Omicron COVID-19 variant's presence interstate, but will not make any immediate changes to the state's borders. But premier Steven Marshall indicated travellers ... Read more »

Cyclist found dead on highway the next day

A cyclist found dead on a major wayside in Queensland's north may have laid unnoticed for more than 12 hours, police believe. The body of the 20-year-old man was discovered ... Read more »

Specialists detect rise in rare cancer

Cancer specialists have noticed a worrying increase in women presenting with advanced forms of rare cancer following Victoria's COVID-19 lockdowns. AAP understands some Melbourne practitioners have seen a 30 per ... Read more »

Biden AVOIDS a federal shutdown by signing bill funding the government until February 18 despite Republicans trying to block it over his vaccine mandates

'Funding the government isn't a great achievement - it's a bare minimum of what we need to get done,' said President Biden on FridayHe signed legislation funding the federal government until Feb 18 The Senate voted 69 to 28 to keep the government open on Thursday night The deal hatched in the Senate allowed for a vote on a single amendment, the Lee-Marshall amendment, which would defund Biden's vaccine mandate The amendment vote failed, with 48 Republicans voting to defund the vaccine mandate and 50 voting against it    Read more »

AFP double down on gang seizures

Federal police investigating bikies and other criminal gangs say they have taken more drugs, more cash and almost twice as many firearms off the streets in the past year. Ninety-nine ... Read more »

Scientists use AI to monitor coral reefs

Coral reef researchers are trialling an artificial intelligence tool they hope could one day be used to keep a close eye on the health of reefs worldwide. Reef ecosystems are ... Read more »

Aussie blokes still quiet on mental health

Aussie blokes continue to struggle with their mental health and are doing so in silence. Two thirds of men aged 18 or older experienced a disconnect with family and friends ... Read more »

Regions bucking property bust for now

While the brakes are on Australia's runaway property boom, the jury is out on whether the thus-far dramatic shift will affect everyone equally. Australian house price growth fell in December ... Read more »

BREAKING NEWS: Biden says there is NO need for a vaccine mandate for domestic travel despite the threat of Omicron and insists masks indoors will be enough

Biden spoke to reporters at the White House FridayHe said current measures are 'sufficient' when asked about requiring vaccines for domestic travel On Thursday Biden flew to the National Institutes of HealthMask wearing will also be required in airports and on mass transit until March 18Previous guidelines on mask wearing were set to expire on January 18  President's COVID plan for winter includes focus on booster vaccinesHe wants FDA to review jabs for kids under 5 'as safely and quickly as possible' His approach 'doesn't include shutdowns or lockdowns,' Biden promisedHe also wants to keep America's borders open for families during holiday season Biden referred to the new Omicron variant as 'concerning' but not 'alarming' Read more »

BREAKING NEWS: Biden says he will make it 'very difficult' for Putin to invade Ukraine: President responds to Russian troop build-up and deteriorating relations between Moscow and Washington

Biden said he had been in constant contact with allies over threat to UkraineOn Friday, he said his administration was putting together 'comprehensive and meaningful set of initiatives' to stop Putin invadingKyiv fears Moscow is ready to invade next month as it masses troops on border Read more »

Ted Cruz says he voted against funding the goverment because of 'pissant' Biden's vaccine mandates that are 'blatantly lawless' and said Democrats are comfortable 'being petty tyrants'

Sen. Ted Cruz voted against keeping the government open Thursday night, going on a tirade earlier about President Joe Biden's vaccine mandates 'No pissant politician, whether a local mayor or a govenor or the president of the United States has the right ... to force you to make that decision,' Cruz said Cruz, who led the government shutdown effort in 2013, was among the Republicans who wanted to shut down the government over mandate fundingHe told reporters that Biden's mandates were 'blatantly lawless' and said Democrats were comfortable 'being petty tyrants' Cruz made his remarks to reporters, while the GOP's ringleader of the shutdown effort, Sen. Mike Lee, spoke on the Senate floor before Thursday night's votes  Read more »

Labor push to boost electric vehicle use

Drivers could save as much as $12,000 on owning an electric car under a new Labor plan to cut emissions. The opposition's long-awaited climate policy, which was unveiled on Friday, ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic