The risks to the call appear “slightly skewed to the upside,” she said.
Higher shipping costs are likely to push tradeable inflation higher, although an improvement in the trade-weighted Australian dollar index may act as a compensation.
Economists from Deloitte Access Economics, State Street Global Advisors and others have warned of further interest rate hikes in an economy that is barely growing and unemployment is high.
Others, such as Warren Hogan of Godot Bank, Christopher Joy of Coolabh Capital and Stephen Hamilton of the Australian National University, argue that the RBA has failed to deliver on its tightening cycle, pointing to steady inflation and consistently strong employment.
Retail sales data will also be in focus ahead of the August 5-6 interest rate meeting, which the statistics office is also due to release on Wednesday.
The pace of home price growth also affects inflation, as higher asset prices can encourage more spending, putting CoreLogic’s July home value index in the spotlight when it is released on Thursday.
Other important Australian Bureau of Statistics data includes building approvals figures for June on Tuesday, international goods trade statistics on Thursday, and producer price index and lending indicators on Friday.
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