Australia's Inflation: Hot and Cold in Q1 2025

Australia's CPI during the March quarter 2025 is a mixed bag. The CPI rose 0.9% quarter-on-quarter, sharply higher than the 0.2% rise in the preceding quarter. However, year-over-year CPI remained flat at 2.4%, still within the Reserve Bank of Australia's target range of 2–3%.

The above inflation rates are due to various reasons. Housing, education, and food costs rose in prominence, with increases of 1.7%, 5.2%, and 1.2% respectively. Conversely, price reductions were experienced in recreation and culture, and furnishings and household equipment, lessening the overall inflationary pressure somewhat.

In summary, while the quarterly CPI indicates a recovery in price pressures, the consistent annual inflation rate proves that total inflation remains under control. Both ongoing cost pressures within strategic sectors like housing and education, combined with softening prices in other parts of the economy, are evidenced in the numbers.