TD-MI Inflation Gauge (YoY)

The TD-MI inflation gauge, released by Melbourne Institute, is designed to provide a timely and accurate monthly measure of inflation in Australia. Based on the Australian Bureau of Statistics methodology for calculating the quarterly consumer price index, the Melbourne Institute Monthly Inflation Gauge estimates month-to-month price movements for a wide-ranging basket of goods and services across the main capital cities of Australia. The YoY reading compares prices in the reference month to a year earlier. The higher the inflation, the stronger the effect it will have on the probability of an interest-rate hike by the RBA. Generally speaking, a high reading should be taken as positive, or bullish, for the AUD, while a low reading is seen as negative or bearish.