FX.co ★ Australia Inflation Rate Steady at 2.4%

Australia's annual inflation rate maintained a level of 2.4% in the first quarter of 2025, consistent with the previous quarter and slightly surpassing market predictions of 2.3%. Despite this, it remains the lowest recorded inflation rate since the first quarter of 2021. Inflation in the services sector decreased to 3.7%, marking its lowest point since the second quarter of 2022, down from 4.3% in the last quarter. This reduction was primarily driven by moderated increases in rents and insurance costs. Nonetheless, this decline was counterbalanced by an uptick in goods inflation, which rose to 1.3% from 0.8%, largely attributed to a significant 16.3% increase in electricity prices, which had previously seen a 17.3% decrease. This surge followed the extension of energy bill rebates, now available to all households. Additionally, food inflation experienced a rise, increasing to 3.2% from 3%, influenced by heightened costs for meat, seafood, fruits, and vegetables. On a quarterly basis, consumer prices increased by 0.9%, surpassing the anticipated 0.8% rise and marking the most significant quarterly increase in three quarters. Concurrently, the Reserve Bank of Australia's trimmed mean inflation advanced by 2.9% year-on-year, which aligns with forecasts and represents the slowest growth rate since the fourth quarter of 2021, easing from 3.2% in the previous quarter.