AUD — Trimmed Mean CPI m/m

Australia Trimmed Mean CPI m/m measures underlying monthly inflation by removing the largest positive and negative seasonally adjusted price movements. The Australian Bureau of Statistics ranks CPI expenditure classes by their monthly price change, accumulates their expenditure weights and calculates the weighted mean of the middle 70%, trimming 15% from each tail.

This is not simply CPI excluding food and energy. A category is removed only when its price movement falls in a trimmed tail for that period, so the included set can change each month. The method reduces the influence of unusually large one-off movements while retaining broad information from the CPI basket. It does not eliminate every temporary or policy-driven effect.

Compare Actual with Forecast and Previous, then review the year-over-year trimmed mean, headline CPI and breadth of price changes. A stronger-than-expected result can raise expectations for a more restrictive Reserve Bank of Australia stance, lifting Australian yields and supporting AUD. A softer result can have the opposite effect. Persistent services and housing-related pressure normally matters more than a single volatile monthly move.

Seasonally adjusted component data and trimming calculations may be revised when seasonal factors or source data change. Monthly trimmed mean is an analytical measure, not the RBA’s formal target, which is headline CPI inflation of 2–3% over time. Use several months of data and the quarterly inflation picture to judge persistence.

Official source: Australian Bureau of Statistics (ABS), Consumer Price Index methodology and analytical series.