Aicd

Australia's Inflation Rate at a 54-Year Low

Consumer Price Index Increases Slightly in Q1 2024

Inflation Rate Drops to 5.4% Year-on-Year

The latest inflation data from Australia shows a significant decline, with the Consumer Price Index (CPI) rising by only 1.3% in the first quarter of 2024 compared to 1.9% in the previous quarter. This marks the lowest inflation rate in Australia for the past 12 years.

The annual inflation rate, which measures the change in prices over the past 12 months, dropped to 5.4% from 6.0% in the fourth quarter of 2023. This is significantly lower than the peak inflation rate of 7.3% reached in October 2022.

The moderation in inflation is primarily attributed to a decline in the costs of fuel and electricity, as well as a slowdown in the growth of food prices. The price of fuel fell by 6.8% over the quarter, while the price of electricity decreased by 2.0%. The price of food, which had been a major contributor to inflation, rose by only 0.4% over the quarter.

The Reserve Bank of Australia (RBA) has welcomed the decline in inflation, but remains cautious about the outlook for the coming months. The RBA has raised interest rates several times in an effort to curb inflation, and further rate hikes are expected in the future.

The full details of the CPI release will be available on the Australian Bureau of Statistics website later today.

Aicd