MNI BRIEF: Aussie Inflation Strong Over Q1

Australia’s Q1 trimmed mean inflation rose 0.8% q/q, 10 basis points below expectations and down from Q4’s 0.9%, while headline CPI increased 1.4%, in line with forecasts, data from the Australian Bureau of Statistics showed Wednesday.

On a monthly basis, trimmed mean inflation rose 0.3% in March, up 10bp from February, while the annual pace rose 10bp to 3.5%. Headline CPI rose 4.6% y/y, up 90bp from February but 20bp below expectations.

“Annual CPI inflation is the highest it’s been since September 2023,” said Sue-Ellen Luke, head of prices statistics at the ABS.

Housing, the largest weighted component in the CPI basket, was the biggest contributor to annual inflation, rising 6.5% y/y. This was followed by transport, which increased 8.9%.

Monthly CPI rose 1.1% in March, driven primarily by transport, which jumped 9.2% due mainly to a 32.8% increase in automotive fuel prices.