PREVIOUS TRADING DAY EVENTS 26 Sep 2023

Australias inflation was reported higher for August in line with expectations putting pressure on the central bank to hike interest rates next month.

Australias monthly consumer price index CPI rose 5.2 in the year to August, up from 4.9 the previous month but the increase was mostly driven by a surge in fuel prices due to global supply factors.

Inflations downtrend stumbled in August But its too early to say inflation is rearing its head again, said Harry Murphy Cruise, an economist at Moodys Analytics. Of course, there are plenty of pain points Rising services inflation also continues to dampen the good news quickly falling goods inflation. Still, the positives outweigh the negatives.

Commonwealth Bank of Australia We think the RBA will be inclined to see it that way too when it meets next Tuesday for the October rate decision.

There is also the view from some economists, however, that the bank will hike one more time before the end of the year, likely in November, after the release of the thirdquarter inflation report.

Source httpswww.reuters.commarketsaustralianinflationpicksupaugfuelpricesjump20230927

The reports yesterday showed a drop in U.S. consumer confidence to a fourmonth low in September. The second straight monthly decline in confidence reported by the Conference Board reflects higher interest rates and concerns about the political environment.

Inflation is slowing, but prices are still higher than they…