Australia
Private Credit Weekly Insights, 2 May 2025
March Quarter CPI. A quick look at what is driving CPI figures in Australia
Consumer Price Index
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This week the Australian Bureau of Statistics released the first inflation reading for 2026.
The headline inflation rate remained steady at 3.8%, although still sitting well above the target range.
Annual trimmed inflation, which is the rate of inflation excluding extreme or volatile price changes, increased from 3.3% to 3.4%, demonstrating a further shift away from the RBA’s desired range.
The main drivers of the price growth over this period were housing up 6.8%, food and beverages up 3.1% and recreation and culture up 3.7%. The biggest contributor to the housing inflation was electricity prices. Electricity costs rose by 32.2% as the Government rebates expired at the end of 2025.
The RBA raised rates by 25 basis points only earlier this month, therefore not reflected in the January CPI dataset. As we noted last week, unemployment remains low, giving the RBA more scope to increase the cash rate. It is widely anticipated that the RBA will lift the cash rate again, at their next meeting, on the 17th of March. The sentiment is supported by the upward trend evident in the data published this week. 
Source: Australian Bureau of Statistics, Consumer Price Index, Australia, January 2026.