Financial News: Australia Inflation Steady At 2.5%

Australia Inflation Steady At 2.5%

02/26/2025 - 00:55:00 (RTTNews)

(RTTNews) - Australia's consumer price inflation unexpectedly remained unchanged in January supporting the case for further monetary policy easing.

The consumer price index registered a steady growth of 2.5 percent in January, data from the Australian Bureau of Statistics showed on Wednesday. Prices were expected to climb 2.6 percent.

The annual trimmed mean inflation was 2.8 percent in January, which was up from 2.7 percent in December.

Excluding volatile items and holiday travel, the CPI measure rose to 2.9 percent from 2.7 percent in December.

The largest contributor to the inflation was 3.3 percent rise in food and non-alcoholic beverages prices. This was followed by a 2.1 percent rise in housing and a 6.4 percent surge in alcohol and tobacco prices.

Meanwhile, auto fuel prices dropped 1.9 percent from a year ago, sharper than the 1.4 percent fall seen in December.

Today's CPI data support the assessment that the Reserve Bank of Australia will be in a position to withdraw some more monetary restriction over the next few months, Capital Economics economist Abhijit Surya said.

The bank is likely to cut rates only twice more this cycle, the economist added. Earlier this month, the RBA had reduced its benchmark rate for the first time since 2020 citing easing upside risks to inflation. The cash rate was lowered by 25 basis points to 4.10 percent.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Fed's Daly Says Policymakers Can Wait For More Clarity Around Trade Policies (21 min(s), 02 sec(s) ago)
(RTTNews) - The Federal Reserve can make more reductions as projected earlier but policymakers sho ...Full Story»

Slovenian Producer Prices Rise 1.2% (38 min(s), 02 sec(s) ago)
(RTTNews) - Slovenia's producer prices increased for the second straight month in March, figur ...Full Story»

Italy Construction Output Grows Most In 6 Months (06 min(s), 02 sec(s) ago)
(RTTNews) - Italy's construction output expanded for the second straight month in February and ...Full Story»

Italy Trade Surplus Shrinks In February (11 min(s), 02 sec(s) ago)
(RTTNews) - Italy's foreign trade surplus decreased in February from a year ago as imports gre ...Full Story»

Moldova Producer Price Inflation Rises To 4.7% (24 min(s), 02 sec(s) ago)
(RTTNews) - Moldova's producer prices increased for the third straight month in March and at a ...Full Story»

Malaysia Economic Growth Eases, Trade Surplus Grows (14 min(s), 02 sec(s) ago)
(RTTNews) - Malaysian economic growth eased further in the first quarter of 2025 amid a contractio ...Full Story»

Japan Nationwide Inflation Climbs 3.6% On Year In March (57 min(s), 02 sec(s) ago)
(RTTNews) - Overall consumer prices in Japan were up 3.6 percent on year in March, the Ministry of ...Full Story»

Japan Inflation Data Due On Friday (23 min(s), 02 sec(s) ago)
(RTTNews) - Japan will on Friday release March figures for national consumer prices, highlighting ...Full Story»