Monthly CPI indicator rises 2.4% in February
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The news: The monthly CPI indicator rose 2.4% in the 12 months to February 2025. This was 0.1 percentage points lower than the prior month.
It represents a quicker slowdown than economists have been anticipating, with most expecting a steady result at 2.5%.
The numbers: The biggest contributors to the increase in annual terms were food and non-alcoholic beverages, up 3.1%, alcohol and tobacco, up 6.7%, and housing, up 1.8%.
One of the drivers of housing has been rents, which were up 5.5% in the period, compared to 5.8% in January. This represents the lowest annual growth rate for rent since March 2023. Electricity prices, due to government rebates, helped keep the housing sector down overall.
CPI excluding volatile items and holiday travel was up 2.7% over the 12 months to February, easing 0.2 percentage points compared to the January period.
Petrol prices have been easing. The ABS recorded a 5.5% fall in automotive fuel prices in the 12 months to February after a 1.9% fall in the comparable period to January. Over the month, though fuel prices were up 1.2%.
The context: The monthly dataset is more volatile than the quarterly figures, so it is not as big a focus for economists. However, it's one of the final pieces of data being released before the Reserve Bank meets for its 1 April decision. Inflation has been moderating more quickly than expected in recent months.
What they said: "Annual CPI inflation was slightly lower in February, after holding steady at 2.5% for the previous two months," said ABS head of prices statistics Michelle Marquardt.
"Annual trimmed mean inflation was 2.7%in February 2025. This was down slightly from the 2.8% inflation in January and has remained relatively stable for three months," she said.
The source: Australian Bureau of Statistics media release
