RBA studies monthly inflation data for potential new policy gauge

SYDNEY, Feb 24 (Reuters) - ‌Australia's central ​bank ​is looking at underlying inflation measures in new monthly data to assess if there ‌might be a new preferred gauge for policy, ⁠a senior official said on Tuesday, adding that any change ‌would be some way ‌off.

Speaking at an event in Sydney, Michael Plumb, head of the economic analysis department at the ​Reserve Bank of Australia, said the central bank would continue to focus on the quarterly data ⁠and use the "trimmed mean measure" to assess underlying inflationary pressures.

"That said, we ​have also been analysing underlying inflation measures constructed using the monthly data," Plumb said.

"As ​more monthly data become available, ‌eventually we aim to assess which underlying inflation measures from the monthly data ⁠will be preferred in a post-quarterly CPI world."

Plumb said any change would be some way off and policymakers would ⁠communicate their thinking ahead of any decisions.

The RBA was forced ​to raise interest rates by a quarter-point this month to 3.85% as inflation reaccelerated after three rate cuts last year. ‌The central bank has said it is focused on the quarterly trimmed mean ‌measure to gauge inflation trends, noting the new monthly ⁠figures are volatile ‌and it would take ​some time for seasonal adjustments to catch up.

(Reporting by Stella Qiu; Editing by Thomas ‌Derpinghaus)

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