The Consumer Price Index (CPI) rose 0.9 per cent in the March 2025 quarter and 2.4 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
Leigh Merrington, ABS acting head of prices statistics, said: "The March quarter increase of 0.9 per cent follows two quarters in a row of 0.2 per cent rises.
"Annual inflation to the March 2025 quarter of 2.4 per cent was unchanged from the December 2024 quarter."
Trimmed mean annual inflation rose 0.7 per cent, coming in at 2.9 per cent in the March quarter, down from 3.3 per cent in the December quarter - the lowest annual trimmed mean inflation rate since the December 2021 quarter.
CBA had forecast headline CPI would add 0.8 per cent, with the annual rate dropping to 2.3 per cent, near the bottom of the RBA’s target band. It noted last week that the more policy-relevant trimmed mean CPI would increase by 0.6 per cent on the quarter and 2.8 per cent annually.
Had this been achieved, the big four bank said a 25 basis point rate cut in May would be “a done deal”.
However, the latest print has come in above forecasts, placing doubt on the RBA's next rate call.
More to come.
