CPI steady at 3.4%
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The news: The monthly consumer price index (CPI) figure increased 3.4% in the 12 months to February, remaining unchanged for the last three months on an annual basis.
The median market expectation was for a 3.5% rise in the year to February.
The numbers: The biggest contributors to the price rises were housing, up 4.6%, food and non-alcoholic beverages up 3.6%, alcohol and tobacco up 6.1% and insurance and financial services up 8.4%.
Housing inflation remained in line with last month overall, though rents are rising faster than they did in January and new dwelling prices continue to be a pain point.
Food is still a significant contributor to price rises, but it’s slowing compared to last month and is at its lowest levels since January 2022. Meat, seafood, fruit and vegetables have seen a drop back in price.
The big issue is insurance, which is up 16.5% in the last 12 months with premiums up for vehicles, homes and contents.
The context: After last week’s better than expected though volatile jobs read, analysts have been keenly awaiting inflation data to see whether it also suggests higher-for-longer interest rates may be warranted.
Today’s inflation figure is the monthly indicator, which is not as comprehensive as the quarterly data from the official statistics bureau. It's yet another volatile read. But it’s an important indication of what is going on in the economy ahead of the Reserve Bank's next meeting in May.
This compares to the latest quarterly data for December 2023 showing inflation rising at 0.6% over the three month period (and 4.1% over the year) with a peak at the end of 2022.
What they said: "When excluding ... volatile items from the monthly CPI indicator, the annual rise to February was 3.9%, down from 4.1% to January," ABS head of prices statistics Michelle Marquardt said.
"Annual inflation excluding volatile items has continued to slow over the last 14 months from a high of 7.2% in December 2022,” she sad.
The source: ABS media release
