On April 26, inflation in Australia fell from a 33-year high in the first quarter, as the cost of living increased at the smallest rate in more than a year, while core inflation was lower than expected, suggesting that the RBA needs to raise interest rates again.
The data released today by the Australian Bureau of Statistics showed that the quarterly rate of CPI in the first quarter rose by 1.4%, slightly higher than market expectations of 1.3%.
The annual growth rate fell to 7.0% from 7.8%, again beating expectations of 6.9%. In March alone, the CPI rose 6.3% from a year earlier, down from 6.8% in February.
A closely watched measure of core inflation, the revised average, rose 1.2% in the March quarter, pushing annual inflation down to 6.6%, below expectations for a 6.7%.