Inflation slowed to 3.6% year-on-year in the March quarter, according to new figures from the Office for National Statistics (ABS), but “prices continued to rise for most goods and services”.
Prices rose mainly for education (+5.9%), health (+2.8%), housing (+0.7%) and food and non-alcoholic beverages (+0.9%).
More specifically, according to Michelle Marquardt, head of ABS Price Statistics, in the first three months of 2024, inflation rose by 1%, up from 0.6% in the previous quarter (December 2023).
“While prices continued to rise for most goods and services, annual inflation eased from 4.1% in the previous quarter and is down from a peak of 7.8% in December 2022.”
It was, however, higher than expected during the March quarter, dampening expectations for a rate cut by the RBA.
Tuition fees posted their strongest quarterly rise in 12 years, as the cost of higher education rose by 6.5%, while the cost of secondary education rose by 6.1%.
The increase in housing prices was again driven by rents, which increased by 2.1%, and new home purchases (up 1.1%).
Rent prices have been driven by the low availability of rental housing and “continue to rise at the fastest pace in 15 years,” Ms Marquardt said.
The increase in food and non-alcoholic beverage prices came mainly from beverages (+3.4%) and fruit and vegetables (+2.5%), partially offset by meat and seafood prices which decreased by 0.7%.
“Increased supply and discounts have led to lower prices for beef and veal and lamb and goat. Discounts on fish and other seafood also contributed.”
