2023.04.2606:52:00UTC+00Australia Inflation Slows In Q1

Australia's consumer price inflation slowed in the first quarter, easing pressure on the central bank to lift its interest rate next week.

Consumer prices increased 7.0 percent from the last year, slower than the 7.8 percent rise in the preceding quarter, the Australian Bureau of Statistics reported Wednesday.

New dwellings, domestic holiday travel and accommodation and electricity prices were the most significant contributors.

On a quarterly basis, inflation moderated to 1.4 percent from 1.9 percent in December. However, this was slightly above forecast of 1.3 percent.

ABS head of prices statistics Michelle Marquardt said CPI inflation slowed in the March quarter, with the quarterly rise being the lowest since December 2021.

Annual trimmed mean inflation was 6.6 percent, slower than the 6.9 percent in the December quarter. The rate was seen slowing to 6.7 percent.

The monthly CPI indicator rose 6.3 percent annually in March, following rises of 6.8 percent in February and 7.4 percent in January. The expected rate was 6.5 percent.

The Reserve Bank of Australia has raised its key interest rate by a cumulative 350 basis points since last May. At the April meeting, the bank decided to halt its tightening to assess the full impact of the previous hikes. The next monetary policy announcement is due on May 2.