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The latest PPI data this week out of the US was hot and the US CPI yesterday was mildly firmer than markets were expecting. However, recent more dovish Fed rhetoric has increased expectations of the Fed reaching peak rates. 

Inflation data is a major focus for the Reserve Bank of Australia and a headline that prints below 5.8% and a trimmed mean below 5.9% will surprise markets and reassure the RBA that inflation is moving lower and would give the RBA confidence to remain on hold for rates.