CPI increased 1% in March quarter
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The news: Inflation increased 1% in the March quarter, a higher quarterly rise than the December quarter at 0.6%. This was above the 0.8% largely expected by economists.
CPI was up 3.6% over the last 12 months, while the annual trimmed mean inflation was 4%, down from 4.2% in the December quarter.
The numbers: The biggest rises contributing to inflation were education costs (5.9%), health (2.8%), housing (0.7%) and food and non-alcoholic drinks (0.9%). Some of these price rises were expected, as the first quarter of the year typically experiences a bump up in health expenses as GPs re-assess their fees.
Rent remained a significant contributor, up 2.1%, and is rising at the fastest pace in 15 years. New dwellings were up 1.1%.
While food was up, meat and seafood costs fell 0.7% helping offset a 3.4% jump in non-alcoholic drinks and a 2.5% increase in fruit and vegetable prices.
The context: This is the final piece of data economists have been waiting on ahead of the Reserve Bank's May interest rate decision, following better-than-expected labour force figures last week. It shows that inflation increases continue to slow, down from a peak of 7.8% in December 2022.
The RBA has been watching services inflation closely which is now in its third quarter of easing at 4.3%.
What they said: "This is the fifth quarter in a row of lower annual trimmed mean inflation, down from the peak of 6.8% in the December 2022 quarter," ABS head of prices statistics Michelle Marquardt said.
The source: Australian Bureau of Statistics
