ICAP's chief economist, Adam Carr, has this to say:
"Due to seasonal adjustment changes, both statistical measures of underlying OZ CPI (trim and weighted median) were revised lower in Q2 from 0.9% q/q to 0.6% q/q . Nevertheless, the December quarter trim and weighted median were revised higher and there were decent revisions to back data such that core (statistical core) CPI was higher in the year to December 2009 than previously published - and higher throughout 2010. The net effect for 2011 is that annual core CPI (as given by the trim and weighted median) is marginally lower at about 2.55% from 2.7% y/y to June 2011 . In terms of momentum, the 3qtr average pace of the trim and weighted median is broadly unchanged from 0.72% previously to 0.67% now. i.e. still 0.7% though on the lower side. The ABS advises that this isn't final revision and they may make other smaller revisions when Q3 CPI come out. Note also the expenditure weights are also being updated next week. Headline CPI is unchanged. This probably doesn't mean a lot for policy or for inflation trends as the momentum up to Q2 is broadly unchanged and underlying CPI was higher last year , it's just that the rise in core CPI is more evenly spread and the base we are coming from going forward is marginally lower."
