FX.co ★ Australia Inflation Steady At 3.4%

The consumer price inflation in Australia remained consistent in February, according to the information given by the Australian Bureau of Statistics on Wednesday. The consumer price index showed an annual increase of 3.4 percent for February, which was slightly less than the forecasted 3.5 percent by economists. The rate for December and January was also recorded at 3.4 percent.

The main factors contributing to the annual increase included housing, food and non-alcoholic beverages, alcohol and tobacco, and insurance and financial services. Commenting on the nature of CPI inflation, which is often affected by items with unpredictable price changes such as automotive fuel, fruits and vegetables, and holiday travel, Michelle Marquardt, ABS Head of Prices Statistics, suggested it might be beneficial to exclude these items from the headline figure to provide a more accurate understanding of underlying inflation. When these volatile items are removed, the underlying inflation showed a decrease to 3.9 percent from January's 4.1 percent.