Aussie Q2 headline CPI outlook - TDS

Analysts at TD Securities explained that they are looking for Q2 headline CPI to lift by +0.6%/q.

Key quotes:

"We look for Q2 headline CPI to lift by +0.6%/q, and as fuel jumped by +7%/q, annual tradable inflation may at last print positive. 

We expect a seasonal boost for Health, while Housing-related prices continue to edge higher. 

The two core measures (trimmed mean and weighted median) are both expected to lift by +0.55%/q, leaving average annual underlying inflation a shade under 2%/y. 

This report is unlikely to shake the neutral RBA given that the prior upgrade to history (+¼%pt from 1¾% to 2%/y) was all-but ignored by the RBA and the markets."