Aussie Q2 inflation outlook, will RBA be concerned? - TDS

Analysts at TD Securities expect Q2 headline inflation to increase by +0.6%/qtr and 2.3%/yr. 

Key Quotes:

"The floods associated with Cyclone Debbie will boost some fresh fruit and vegetable prices, however, fuel prices falling around -3%/qtr provide an offset."

"On our projections, we don’t expect Q2 CPI to have a material impact on current RBA thinking given that core inflation is rising but likely to remain below 2%."

"However, such an outcome could dampen recent market enthusiasm for a more hawkish RBA tone in the coming months."