Sydney Australia skyline

Australia Inflation Q1 2020

Australia: Inflation at over five-year high at 2020 outset, sits within the Central Bank’s target band

In the first quarter of 2020, consumer prices rose 0.3% over the previous quarter following a 0.7% increase in the last quarter of 2019, according to the Australian Bureau of Statistics (ABS). The figure beat market expectations of a 0.2% increase although marked the slowest rise since Q1 2019. According to the ABS, Q1’s deceleration was mainly the result of falling prices for clothing and footwear; recreation and culture; and transport on the back of lower oil prices. These were only partially offset by a faster rise in prices for education and a rebound in health prices.

Inflation climbed to 2.2% in Q1 from Q4’s 1.8%, beating market expectations of a 2.0% inflation and marking the highest reading since Q3 2014. Therefore, inflation moved into the Reserve Bank’s 2.0%–3.0% target band. Regional variations persisted: Inflation came in between 1.5% and 2.7% everywhere excluding Hobart, where it logged 3.4%.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest