Australian Property Investor
The measure of inflation most carefully watched by the Reserve Bank of Australia has fallen within the central bank’s preferred range for the first time in four years.
Trimmed mean annual inflation fell to 2.9 per cent from 3.3 per cent during the previous quarter, marking the first time that trimmed mean annual inflation has fallen with the RBA’s 2-3 per cent target band since December 2021.
Trimmed mean, or underlying, inflation is weighted towards the average cost of the middle 70 per cent of items.
The headline annual inflation rate to the March 2025 quarter of 2.4 per cent was unchanged from the December 2024 quarter. The March quarter increase of 0.9 per cent follows two quarters in a row of 0.2 per cent rises.
The inflation data from the Australian Bureau of Statistics (ABS) released Wednesday (30 April) offers more encouragement for the RBA to cut the official cash rate at its next meeting on 20 May.
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