Through the March quarter,inflation slowed. It was 7.8 per cent in the December quarter but has slowed to 7 per cent. Importantly for the Reserve Bank,underlying inflation – which excludes one-off price rises – also eased,from 6.9 per cent to 6.6 per cent.
But if you looked at the monthly inflation data,which was also released on Wednesday,it showed a small lift – from 6.8 per cent to 6.9 per cent (although well down on the 8.3 per cent recorded in December).
Within the inflation data itself,there are cases for and against another interest rate rise.
Housing costs,which jumped another 1.9 per cent in the quarter,remain a key inflation pressure. But the cause of that pressure is shifting.
A few months ago,it was being driven by costs associated with construction and the end of the Morrison-era HomeBuilder program. Now,it’s being driven by rents and the soaring cost of utilities.