Your Shortcut to... Underlying inflation - understanding the trimmed mean

With a federal election due in the first half of next year and interest rates likely to influence the outcome, we’re taking a closer look at the number the Reserve Bank says is a major factor in the decisions it makes when determining the nation’s cash rate. It’s called the trimmed mean… We’ll look at what it is, why it’s important, and why the Reserve Bank watches it so closely.  Squiz Recommends Reading: The ABS explainer on inflation - Ok, we’re nerding out here but this is a fascinating look at how the prices of some items (like movie tickets) have changed significantly over time. Squiz Shortcuts is your back story to the big news stories… Want the email version? Sign up for the Shortcuts newsletter here