Fresh data from the Australian Bureau of Statistics (ABS) shows that the national Consumer Price Index (CPI) rose 2.4% in the 12 months to February, coming in slightly below expectations of 2.5%.
ABS Head of Prices Statistics Michelle Marquardt commented, “Annual CPI inflation was slightly lower in February, after holding steady at 2.5% for the previous two months.”
The largest contributors to the annual movement were food and non-alcoholic beverages, which rose 3.1%, alcohol and tobacco, up 6.7%, and housing, which increased 1.8%.
Excluding volatile items and holiday travel, the monthly CPI indicator rose 2.7% in the 12 months to February, down from 2.9% in January. This measure omits fluctuations in automotive fuel, fruit and vegetables, and holiday travel and accommodation.
The annual trimmed mean inflation, which smooths out irregular price changes, fell to 2.7% in February, compared to 2.8% in January.
Food and non-alcoholic beverages saw inflation ease to 3.1% in February, down from 3.3% in January, reflecting a general softening in grocery price increases.
Dairy and related products recorded an annual price decline of 0.3%, following reductions in farmgate milk prices.
Over the same period, housing inflation continued to slow, falling to 1.8% in February, down from 2.1% in January.
Rents rose 5.5%, marking the slowest annual increase since March 2023 as vacancy rates in major cities continued to rise.
New dwelling price increases slowed to 1.6%, down from 2.0% in January and posted the weakest rise since May 2021 as home builders introduced discounts and promotions to attract buyers.
A decline in national electricity prices, which fell 13.2%, also contributed to the easing of overall inflation. This was largely due to the timing of Commonwealth Energy Bill Relief Fund rebates, particularly in Victoria.
Payments for the third instalment of the rebate began on 13 January 2025, and some households that missed a January payment will receive two rebate payments with their next bill in April.
All households billed in February received the third instalment of the rebate.
Marquardt noted: “Excluding all Commonwealth and State government rebates, electricity prices would have fallen 1.2% in the 12 months to February.”
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