Australian investors are starting to realise the soft landing they have priced into stocks is far less certain than the rich valuations on the ASX would suggest.

While economists and investors will be cautious about reading too much into Wednesday’s monthly inflation data – Barrenjoey interest rate strategist Andrew Lilley rightly points out this remains a noisy set of numbers that, so far, has limited predictive power – it did provide more evidence that the disinflationary process in Australia has stalled.