Pre-election data a mixed bag
Australia's Consumer Price Index rose 0.9% in the March 2025 quarter, taking the annual inflation rate to 2.4%, according to new data from the Australian Bureau of Statistics.
Both monthly and annual inflation results came in slightly hotter than expected, with the market forecasting 0.7% and 2.2% respectively.
The most significant price increases for the quarter were seen in education, which rose 5.2%, followed by housing at 1.7% and food and non-alcoholic beverages at 1.2%.
These rises were partially offset by declines in recreation and culture, which fell 1.6%, and furnishings, household equipment and services, which dropped 0.9%.
Underlying inflation, measured by the trimmed mean, eased to 2.9% – its lowest level since December 2021 and down from 3.3% in the December quarter.
Trimmed mean inflation is considered the preferred metric used by the Reserve Bank of Australia (RBA) when determining monetary policy.
Being only slightly hotter than expected, these latest inflation results are unlikely to move the dial of the upcoming general election, when incumbent Prime Minister Anthony Albanese (pictured) will face off against LNP challenger Peter Dutton this Saturday.
