Australia’s CPI increased 0.9% QoQ and 2.4% YoY in Q1 2025, unchanged from 2.4% YoY in Q4 2024 and slightly above expectations of a 2.3% YoY increase.

• Non-discretionary items like food & beverages and housing saw moderate gains as they increased 1.2% QoQ and 1.7% QoQ, respectively.
• Declines were seen in clothing (-0.8% QoQ), household furnishings & services (-0.9% QoQ), and recreation & culture (-1.6% QoQ).
• The trimmed mean inflation rate was up 2.9% YoY, down from 3.3% YoY previously and the lowest since December 2021.
• Services inflation eased to 3.7% YoY (prev 4.3% YoY) which was the lowest since June 2022. Goods inflation was slightly higher at 1.3% YoY (prev 0.8% YoY) as a result of electricity prices rising.
• The electricity index saw an increase of 16.3% QoQ as many households used up their electricity rebate. Excluding the rebates, electricity prices would have been up 0.4% QoQ. However, due to the relief, the index is down -11.5% YoY.
• The monthly CPI indicator was up 2.4% YoY in March, unchanged from 2.4% YoY in February. CPI ex volatile items and holiday travel was up 2.6% YoY, down from 2.7% YoY.