After the latest quarterly CPI release, an economist at the Reserve Bank of Australia is taking a deeper look at which core inflation indicators actually matter in the monthly data
At first glance, this might not sound dramatic. But here’s the catch.
Central banks don’t just react to headline inflation numbers. They dig into the underlying trends — the data beneath the data. And if the RBA starts prioritizing different core inflation measures, it could quietly reshape how future interest rate decisions are made.
For traders watching the Australian dollar, this matters. For investors tracking global monetary policy shifts, this matters even more.
Sometimes markets don’t move because of loud announcements.
They move because of subtle shifts in focus.
And this looks like one of those moments.
Keep an eye on how the RBA frames inflation in upcoming statements. The direction of policy could depend on it.