Underlying Inflation Back Below Three Per Cent
After more than three years, Australia’s underlying rate of inflation has a two in front of it again. This week’s release of the March quarter 2025 Consumer Price Index (CPI) reported that the annual rate of headline inflation remained unchanged from the December quarter at 2.4 per cent. That marked a third successive quarter of within-target band inflation. The RBA has indicated it will pay more attention to underlying inflation than the headline rate – the latter being influenced by changes in government policies around cost-of-living relief. This means the bigger news this week was the annual rate of trimmed mean inflation had eased to 2.9 per cent. That was the first sub-three per cent result for this measure since the December quarter 2021.
https://www.aicd.com.au/economic-news/world/outlook/underlying-inflation-back-below-three-per-cent.html