Australia: Inflation moderates in Q1
Annual inflation came in at 7.0% in Q1, down from Q4’s 7.8%, which had marked the highest reading since Q2 1990. Therefore, inflation moved closer to the Reserve Bank’s 2.0%–3.0% target band. The softer reading was mainly due to less pronounced price increases for food, transport, housing, furnishings and recreation.
Meanwhile, consumer prices rose 1.4% over the previous quarter in Q1, down from Q4’s 1.9%.
Commenting on the release, Robert Carnell, regional head of research for Asia-Pacific at ING, stated:
“If there is no repeat of last year’s food and energy price spikes, then it is just possible that inflation will fall back within the RBA’s 2-3% inflation target range when the December CPI data is released in early 2024, a full year ahead of the RBA’s forward guidance for inflation.”