Recent data indicates that inflation in Australia has cooled down ahead of the Reserve Bank of Australia (RBA)’s upcoming interest rate decision. The Australian Bureau of Statistics released monthly consumer price index (CPI) figures, revealing that headline inflation fell to 2.4 percent for the year ending February, down from 2.5 percent the previous month. This figure remains comfortably within the RBA’s target range.
Additionally, two key measures of core inflation demonstrated a slight decline. The CPI, excluding volatile items and holiday travel, decreased from 2.9 percent to 2.7 percent. Meanwhile, the trimmed mean, which is the RBA’s preferred gauge for assessing underlying inflation, has also dropped to 2.7 percent.
As inflation eases, the RBA’s next steps regarding interest rates will be closely watched, given the current economic context.