Figures released this morning, Wednesday, April 30, during the Asian session, from the Australian Institute of Statistics (ABS) showed that consumer price inflation rose by 2.4% year-on-year in March, matching February’s reading. Expectations were for a 2.3% increase, remaining at its lowest level in four years.
The core index, which excludes sharp changes in consumer goods and services prices, grew by 0.7% quarter-on-quarter and by 2.9% year-on-year in March, compared to 3.3%.
The most significant increases in the index came from the housing sector (1.7%), education (5.2%), and alcohol and tobacco prices (6.7%). Fruit and vegetable prices rose by 7.6%. Conversely, the entertainment and culture sectors declined by -1.6%, and furniture, household equipment, and services (0.9%). These stable figures, which are within the Reserve Bank’s target range, support the bank’s move to cut interest rates by a quarter point at its May meeting. Expectations are that two rate cuts could follow if inflation remains within the target range.