NAB's senior economist Taylor Nugent says the reserve bank will be keen to get a bigger picture for the quarterly inflation data ahead of the May meeting, so they'll wait and see until then
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00:00 I don't think the RBA certainly will be reading too much into this.
00:05 You know, beneath that, you mentioned travel there.
00:08 Travel is very volatile month to month.
00:10 It's always a source of uncertainty, especially over summer where you have big swings in travel
00:13 prices, excluding the volatile items and travel.
00:17 What we saw is that inflation eased from 4.2% to 4.1% in year on year terms.
00:23 And that was in line with our forecast.
00:25 And so again, just speaking to that point that while there is ongoing progress on inflation,
00:31 it is still above where the RBA would like to see it.
00:33 I think one thing that's very important, you mentioned there the difference between this
00:37 monthly data and the full quarterly, especially in January in the first month of the quarter.
00:42 The data that is collected in January is heavily weighted towards goods.
00:46 And we know what the RBA is focused on is indicators in the basket on the breadth of
00:51 inflation and any clues they can get about the strength and persistence of domestic price
00:55 pressures, which is more important for how they're thinking about the outlook.
00:58 And so we didn't get too much new news on that.
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