Reported Earlier, Australia Consumer Price Index (QoQ) For Q4 0.6% Vs. 0.8% Est.; 1.2% Prior
Portfolio Pulse from Benzinga Newsdesk
Australia's Consumer Price Index (CPI) for Q4 came in at 0.6%, lower than the estimated 0.8% and the previous 1.2%. This indicates a slower pace of inflation than expected.
January 31, 2024 | 5:14 am
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The lower-than-expected CPI in Australia may lead to a less aggressive monetary policy, potentially benefiting Australian equities, including those in the iShares MSCI Australia ETF (EWA).
The CPI is a key indicator of inflation, which central banks use to set monetary policy. A lower CPI could mean less pressure to raise interest rates, which is generally positive for equities as borrowing costs remain lower. EWA, which tracks Australian equities, may benefit from this environment in the short term.
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